Therm limits

A change in natural gas rates encourages wasteful consumption and punishes those who conserve. The policy should be revised

Two things have been heating up since we first inspected PSNC Energy's new natural gas rates early this month. The Triangle's December temperatures -- thank goodness -- and natural gas customers' ire.

But the warm weather won't last, and anger at PSNC's new rates is likely to grow with the winter's rising gas bills. It's time this rate schedule received some serious reconsideration.

The new policy centers on rates for customers who use very little gas during June, July and August, when furnaces aren't running. PSNC has shifted those customers to a higher rate. Under the setup that took effect in November, to get a lower rate year-round, you have to use at least 24 therms over the course of those three months -- which many households don't. The rationale hinges on what the utility and the Utilities Commission apparently see as a more equitable distribution of PSNC's annual costs.

Any change that reclassifies 97,000 PSNC customers and raises their bills by about $10 a month requires a far more persuasive justification than we've been offered to date for this one.

And, contrary to the natural gas line, it's hard to see how most of these customers can easily qualify for the lower, 24-therm-plus rate simply by switching to a gas water heater. Many of the customers affected by the rate change, it appears, already use gas to heat their water. Judging by the views expressed in People's Forum letters, the whole situation certainly has heated up some N&O readers:

* "We consider this an unfair practice for people in our circumstances. We are simply unable to use enough gas in the summer to exceed the 24-therm requirement. PSNC ludicrously suggests that we lower our rates by purchasing a gas grill to increase our summer gas usage!"

* "One solution would be to remove the hot water heater insulation blanket in the summer and occasionally run some hot water down the drain so I can burn those extra four therms thus saving significant money on my overall usage. How ridiculous would that be though, when we as a nation are encouraged to save energy whenever and wherever possible?"

* "Looking at my bill, if I wasted six more therms of gas costing $8.28, PSNC Energy will cut my annual bill (for the last 12 months) of $1,463 by 8 percent, or $117. This is outrageous and contradicts any claim to advocate conservation or common sense."

As these writers suggest, perhaps the most jarring aspect of the new rate policy is its implicit call to forget about conservation, at least in the summer. PSNC only deepens suspicions by hyping the supposed benefits of natural gas barbecue pits, gas tiki-torches and gas pool heaters -- all helpful devices to get over that 24-therm hurdle. Is this partly a ploy to peddle gas-powered gadgets?

In that light, it's useful to learn that customers can spread their increased summer usage out over three months, averaging 8 therms a month, or burn all 24 therms in one month. How about another option? Just bill us, PSNC, for the therms we're short. We'll save money and you'll save gas.

The utility and the Utilities Commission no doubt put a lot of thought into this policy change, but not enough. It appears to be neither fair nor wise. A rate plan that engenders scorn and invites ridicule deserves to flame out.

Take another look -- and come up with something with a better odor.