When asked "How do you feel about your recent heating bills?" about 44 percent of those responding reported their bills were "higher than expected," while another 30.2 percent rated them as "much higher than expected." Much of that is likely due to colder than average temperatures, not rate increases, according to South Carolina Electric & Gas Company (SCE&G) media representative Eric Boomhower. In fact, in January of this year, SCE&G set a new winter record for peak electricity demand.
"I’m actually surprised the number is not bigger," said Boomhower, referencing the survey response percentage. "The weather has been much colder in the state than versus a year ago, much colder. In fact, I know my own heating bill was almost $100 higher than the next highest bill I’ve ever had. It’s not about higher rates, it’s about lower temperatures."
Data obtained at the SCE&G Web site indicates that two extra days in the January billing cycle compared to 2009, combined with lower temps, had the potential to cause sharp increases for many customers. Boomhower, who lives in the Columbia area, said his electric bill went up 64 percent over last year.
"The average temperature dropped 14 degrees," he said. "When you go from 50 degrees to 40 degrees, you’re running some heat, and that’s what happened…We had five straight days in January where the temperatures dropped below the teens."
Boomhower also said that homes in this part of the country are typically not built or equipped to sustain long periods of cold weather as well as their northern counterparts.
"The electric heat pump is standard (here) for most folks," he added. "But once temperatures get down to 30 degrees or so they become very inefficient…Basically, a heat pump can’t work in an optimal way at that temperature as it starts getting colder and has to run nonstop. It will be cranking around the clock."
The other component is your thermostat setting, said Boomhower, which can affect a large portion of your bill each month.
"There is a huge range between 70 and 75 degrees in terms of how much it could cost you on your bill."
Another factor set to impact heating and cooling bills in SCE&G’s 23,000 square-mile territory is the company’s proposed 9.52 percent overall base rate increase submitted in January to the Public Service Commission of South Carolina. A public hearing on the increase is expected to be held within the next few months. When Daniel Island residents were asked how they felt about the possibility of paying more for electric services, about 76 percent were opposed to the idea, saying they were "against any rate hike." Another 23.7 percent said they would be in favor of a smaller hike.
"I think consumers are shelling out enough because of the continued slump," wrote one respondent. "It’s not helping for a company to raise the price of something that is a necessity."
"This is an industry with vast resources," commented another resident. "They should be developing cheaper, better ways to provide their products, rather than continuing to pass them on to the consumer…"
Consumer impacts were taken into consideration, said Boomhower, when SCE&G began planning for the rate increase. A press release issued by the company in January explained that the proposed new rate is primarily driven by the costs associated with complying with $700 million worth of federally mandated environmental and safety initiatives. For example, the installation of $500 million scrubbers will eliminate more than 95 percent of sulfur dioxide from two SCE&G plants and an estimated 60 to 90 percent of mercury emissions.
"We are committed to conducting business in an environmentally sensitive manner," said SCE&G President Kevin Marsh. "However, ensuring compliance with ever-increasing governmental regulations comes with a price tag, and it’s getting steeper all the time. This rate increase is a concrete example of that fact."
If approved, the rate change will go into effect over an 18 month period, beginning in July with a 3.19 percent increase. Subsequent increases would be implemented in January and July of 2011. According to SCE&G, the monthly bill of a residential customer using 1,000 kilowatt hours of electricity would increase $3.19 in phase one, $3.77 in phase two, and $4.01 in phase three.
"We’re definitely sensitive to the impact this is having on people," said Boomhower. "We understand this is an emotional issue and that people are going through challenging times right now. We wouldn’t be doing it if we didn’t have too… We need to make tough decisions to make sure we can still operate viably and serve our customers."
The majority of those surveyed on the subject by The Daniel Island News reported that they have not taken any steps, personally, to protest the rate increase. Residents are welcome to attend the public hearing scheduled in May or June with the state’s Public Service Commission, said Boomhower.
"We have to make the case and justify why we think this is necessary, and show that we’ve been prudent in how we’ve operated the company," he added. "…The public hearing process gives people an opportunity to have that voice heard."
SCE&G also offers a variety of tips to consumers to keep costs low, including taking an online "home energy audit" to analyze your electric usage, conducting an in-home energy consultation with SCE&G, or taking steps to weatherize your home. In addition, rebates, bill and tax credits, and financial assistance initiatives are also available. For additional information, visit the SCE&G Web site at www. sceg.com.
