City’s natural gas prices dip|[3/7/06]
Published 12:00 am Tuesday, March 7, 2006
Lower gas rates will be a sign of spring in March bills to be sent to customers by the Vicksburg Water and Gas Administration.
“Today we will be reducing our gas price,” Mayor Laurence Leyens said at a board meeting Monday. “It won’t be reduced to pre-Katrina levels, but we’re heading that way.”
Strategic Planner Paul Rogers, who buys natural gas for the city to resell through about 10,000 meters, said the city gas rate will decrease by 72 cents per thousand cubic feet from $19.92 to $19.20.
Applied to specific bills, Tim Smith, project administrator, said an average customer billed for 120 ccf would pay $238.80 under the old rate and $230.40 under the new rate to appear on bills starting Wednesday.
Vicksburg increased gas, water and garbage collection rates as part of the city’s new budget and has increased gas rates three times since to pass along increasing costs. The increases have been prorated across 12 months.
In related news, Smith said customers, most of whom use the gas for heating, had lower bills in February than in January.
“February was colder than January, but we sold more gas in January,” Smith said. “So that tells us people were conserving and watching their consumption.”
The higher bills have brought waves of protest, but Leyens has responded that the city’s options were to pass along the higher rates charged by suppliers or force the city into bankruptcy. Gas Department employees have worked out payment plans with low-income residents to actually reduce the number of turnoffs for non-payment the city has recorded so far this year.
In other business, Leyens said the city has been selected by the federal government as a Preserve America city. He said the designation makes city organizations eligible for grant money. The government Web site dedicated to Laura Bush’s initiative says the Preserve America matching-grant program provides funding to support preservation efforts through heritage tourism, education and historic preservation planning.
In other business, the city board: