ANDERSON COUNTY, Tenn. (Story courtesy of WVLT) — Anderson County’s mayor and commission are calling on Tennessee’s congressional delegation to intervene after a Canadian-owned pipeline company raised rates by more than 100%.
In a letter to lawmakers, Mayor Terry Frank and commissioners criticized East Tennessee Natural Gas for raising its transportation rate by 123% and its storage rate by 178% in November.
The company is the only interstate natural gas pipeline that runs across Tennessee from east to west and the only supplier for many utilities in the region. When their costs go up, they get passed straight through to customers.
“There’s not one of our constituents that needs this rate increase right now,” said Denise Palmer, commission chair.
Mayor Frank said her latest gas bill was the highest she has seen since she moved into her home in 1998.
Utility officials said there is more going on than just one company. Local gas is bought on a global market, with much of it moved up from the Gulf. When a long, bitter cold snap hits, average gas use can jump by more than 50%. If demand goes over what utilities locked in ahead of time, they have to go back on the pipeline and pay whatever the market is charging that day.
Industry experts said gas that cost around $5 can suddenly sell for $12 or even $25 when supply is tight. Those costs show up on customer bills.
“Young families are struggling to launch, our seniors on fixed income are struggling to make ends meet — we just can’t sustain that kind of increase,” Palmer said.
The county’s letter urges lawmakers to keep pressuring the Federal Energy Regulatory Commission to review the East Tennessee Natural Gas rate case and make sure any pipeline charges are just and reasonable under federal law. Local gas utilities and large industrial customers have already formally challenged the increase in that same case.
In the meantime, utilities said there are ways to take some control. They recommend lowering thermostats as low as is safe and comfortable, sealing leaks around windows and doors and asking about levelized or equal pay billing plans that spread costs evenly over the year so customers are not hit with huge spikes after a cold spell.
“I think it’s important people know they’re heard — that their elected officials care and are using every tool we have to push for fair rates,” Frank said.
County leaders said they are waiting to hear back from members of Congress and from federal regulators in Washington. They urged customers who are struggling to call their utility and their U.S. senators and representative.
WVLT reached out to the Knoxville Utilities Board and they provided us with the following statement:
“Natural gas bills that residential customers received in March are higher than the previous month due to cold weather in late January and February, which drove average gas consumption up 51% compared to January. In addition, natural gas prices have also increased compared to last winter, largely due to a significant rate increase from KUB’s gas supplier, which is outside of KUB’s control. Additional information related to natural gas prices, including KUB rate changes, is available at www.kub.org/energy-costs.
KUB offers a number of resources and tips for saving energy on our website: www.kub.org/connect-to-savings. Lowering the thermostat as low as safely and comfortable as possible during periods of colder weather can make a meaningful difference over time, as can sealing leaks around windows and doors. We also encourage customers to enroll in KUB’s Levelized Billing Plan, which helps avoid drastic weather-related changes in utility bills. www.kub.org/levelized
If customers have concerns related to their bills, they can call KUB’s Customer Service line at 865-524-2911.”
