Gasping over gas

Since Mollie Kleiman’s husband recently passed away, she continues to adjust to an altered life. One change she will make is solely paying for her gas bill, which the resident of the 2300 block of South Hutchinson Street placed in her name last month.

Forking over about $200 a month to Philadelphia Gas Works last winter, Kleiman is not happy about a potential rate increase that could further drain her fixed income.

"They’re high enough and we have row homes," said Kleiman, 81. "My sister pays over $300 a month and she has a single."

Her comments have mirrored similar ones throughout the city, ever since PGW announced it filed a request with the Pennsylvania Public Utility Commission last month to raise its rates by 19.4 percent — a $335 addition to a resident’s bill throughout the company’s fiscal year, which ends Aug. 31.

"I can just about pay my bill now," Kleiman said.

If approved by the commission, which is expected to vote on the matter this week, the rate increase would go into effect Oct. 7. This potential hike follows a 4.9-percent rate increase implemented by PGW last month.

"We were already experiencing an increase in the cost of gas just because it was a warm summer," said Doug Oliver, the utility’s director of corporate communications. "In the summer, you have more demand for electricity, but the majority of the electric generator plants are fired by natural gas. When you need more electricity, you also need more natural gas."

The 4.9-percent figure was derived before this summer’s two powerhouse hurricanes –Katrina and Rita — ravaged the Gulf States, where a majority of the country’s natural gas production occurs. An additional increase was needed since the storms resulted in reduced production, Oliver said.

Since PGW purchases natural gas at cost, he said the utility passes along this price to customers "without markup." But some residents say PGW should make concessions for those on a tight budget.

"I saw [the news about the rate hike] on TV and said, ‘My God, that’s impossible,’" said resident Elizabeth Alterman. "We don’t mind a little increase, but that’s a little much."

UNDERSTANDING THE RATE hike’s potential strain on residents, Oliver said PGW offers assistance programs and payment options. "Budget billing" allows customers to spread out the cost of their heating bills over a 12-month period.

The Customer Responsibility Program, which assists PGW’s lowest-income customers, calculates an affordable bill for residents based on their family size and monthly income.

Diane Grimes, director of Dixon House, 1920 S. 20th St., said she has encountered an increase in the number of residents seeking the community center’s services since news of the rate hike broke. Some 50 people Monday sought support from the center’s Utility Emergency Services Fund, a program that pays a utility bill amounting to $500 or less. Since the center can only register 10 residents into the program, people were turned away, Grimes said.

While helping those in need, Grimes said she also has been telling people to make payments on their bills as soon as possible.

"Once they get [their utilities] turned off, it’s going to cost a lot more to turn it back on," she said.

Oliver noted PGW’s residential shut-off policy remains in place this winter. Customers who do not pay their bills within the 30-day billing cycle are deemed late. They will then receive a 10-day shutoff notice before the utility cuts off their service. Residents who have already obtained this notice should not ignore it, Oliver said.

"It’s warm outside today, but it will be cold before you know it," he said.

Enrolled in PGW’s budget-billing program, Renee Leever paid $73 a month during last year’s winter season.

The 73-year-old feels the potential increase stems from PGW’s delinquent accounts.

"We pay more because other people don’t pay their bills," said Leever, of the 2300 block of South Franklin Street.

Oliver disagrees: "The increase people are paying for is the increase PGW is paying for gas and not more delinquent accounts."

Residents looking to combat high gas bills should begin "winterizing" their residences, Oliver added.

"If you got a couple extra dollars to have your roof insulated, this would be a great time to do it," suggested Oliver, who noted sealing up cracked windows also might cut down on energy usage.

Conservation, Oliver said, is key during a winter where residents might experience a 24-percent surge in their gas bills compared to last year.

Carl Rettig is still reeling over the high gasoline prices. The notion of increased gas costs is too much for Rettig, who lives on a fixed income, to bear.

"Where do they think we’re going to get this money?" he asked. "I’m 80 years old. It gets rougher every week. It doesn’t get better at all."

For more information about PGW’s energy assistance programs, call 215-235-1000 or go to www.pgworks.com.