What's the deal with MY GAS BILL?

By the Oklahoma Corporation Commission WHY IS MY GAS BILL SO HIGH? Because the price of natural gas is at record highs, prompted by high demand for natural gas at a time when

Friday, January 12th 2001, 12:00 am

By: News On 6

By the Oklahoma Corporation Commission

WHY IS MY GAS BILL SO HIGH?

Because the price of natural gas is at record highs, prompted by high demand for natural gas at a time when supplies are low.

WHY DOES THE COMMISSION ALLONY THESE HIGH PRICES?

It doesn't. Contrary to popular belief, the Commission does not and may not regulate the price of natural gas or any other commodity. Such things are part of a free market.

BUT YOU REGULATE GAS COMPANIES. ISN'T THAT TILE SAME THING?

No. Under Oklahoma law, the Commission can only regulate the delivery and customer fees your gas company charges you for providing the gas. In the case of ONG, the Commission ordered a $20 million cut in those fees, making delivery fees the lowest they've been in some years.

THEN IS THE GAS COMPANY ALLOYED TO GOUGE ME ON THE PRICE OF GAS?

No. Under state law, the gas company is forbidden from making a profit on the price of the gas itself. State law does allow the company to pass through to you the price it has to pay for the gas. As the law stands now, such "pass throughs" do not require Commission approval. However, the Commission is allowed to and does conduct an annual review to be sure you paid only what the utility paid for gas.

IF THE GAS COMPANY ISN'T MAKING ANY MONEY ON THE HIGH PRICE OF GAS, THEN HOW DOES IT STAY IN BUSINESS?

The gas company makes its profit through its delivery charge. It does not "sell" gas. Its business is rather like the shipping company which delivers something you ordered from another firm. The shipping company doesn't make any money on the item, only on the delivery of the item. And again, the Commission has moved aggressively to keep delivery rates charged by gas companies in Oklahoma as low as possible (see question 3).

I'VE ALWAYS BEEN TOLD OKLAHOMA HAS A HUGE SUPPLY OF NATURAL GAS. WHAT HAPPENED?

Energy prices plummeted to record lows a few years ago, forcing many domestic producers out of business. Others survived, but had to stop drilling. Unlike the case involving oil, Americans are almost wholly dependent on domestic producers for natural gas (for example, there's no pipeline from Saudi Arabia). Now demand for natural gas has increased at a time when the available supply is limited largely because of a shortage of personnel, equipment, and investment funds needed to drill wells. It should be noted that drilling has increased in recent months, and the Commission has taken steps to make the regulatory process for producers as time and cost-efficient as possible in order to speed up production and save on costs that are ultimately paid by all of us. However, (as the Commission has been warning publicly for over a year) it could take as much as two years to catch up to demand.

I HAVE ALL THESE CHARGES ON MY GAS BILL THAT NEVER SHOWED UP BEFORE. WHAT ARE THEY?

These are charges that have always been included in your total fee. However, the Commission ordered a new format, so you would know exactly where your money is going. There are no new charges on your bill.

Iâ€™M ON A MUNICIPAL SYSTEM,WHICH HAS RATES HIGHER THAN ONG OR ARKLA. CAN'T THE COMMISSION DO SOMETHING?

No. The Commission is forbidden by law to regulate municipal gas systems. Any concerns you have should be directed to your city manager or other city officials. It is interesting to note that many of those Oklahomans on systems the Commission is not allowed to regulate are paying markedly higher prices than those who are customers or firms regulated by the Commission.

I CAN'T PAY MY BILL. WHAT DO I DO?

First, call your gas company immediately and tell them you need to work out a payment arrangement. They will work with you. There are a number of programs available to help those who can't afford the high heating costs we are currently experiencing. Don't hesitate to call us, either. Our toll free Utility Complaints number is 1- 800- 522- 8151.

A list of general assistance available for consumers hit hard by high utility bills

Oklahoma Department of Human Services (DHS)-LIHEAP-Federally funded heating assistance program administered by DIIS for low-income consumers. Call your local DHS office for more information.
Salvation Army - Share the Warmth and other programs to help those who can't afford their utility bills. Contact your local Salvation Army chapter for more information.
Oklahoma Department of Veteran's Affairs - Veterans or their widows can apply for assistance. Veteran's criteria include service during time of war, and there must have been an Honorable Discharge. They will reimburse for food loss during the recent ice storm.
American Legion-Temporary Financial Assistance (TFA) is available to any military veteran with an Honorable Discharge who served during certain dates. Military veterans do no need to be a member of the American Legion to qualify for the TFA. Call your local American Legion chapter. State headquarters for the American Legion: (405) 525-7557.
Churches across the state are doing what they can to help as well.
Community Action Agencies -Certain county offices serve as the clearinghouse for Salvation Army funds. The state office number for CAA is (405) 524 - 4124.
Native American Indian tribes are utilizing LIHEAP funds for tribal members. Oklahoma Conmission of Indian affairs telephone number is (405) 521- 3828.
Work Force Development Centers - Offices are located in each quadrant of the state. The centers offer funding to help with utility bills.

NOTE: UTILITY COMPANIES REGULATED BY THE COMMISSION ARE REQUIRED TO ADVISE ANY CUSTOMER FACING DISCONNECTION OF AGENCIES THAT PROVIDE FINANCIAL ASSISTANCE.

To visit the Oklahoma Corporation Commission website, click here.