Cold Weather Puts a Credit on Virginia Natural Gas Bills

November 21, 2002

Norfolk – Colder-than-normal temperatures over the past month mean a credit for thousands of Virginia Natural Gas (VNG) customers, thanks to the newly implemented Weather Normalization Adjustment.

Residential customers in the first billing group (Oct. 15 - Nov.13) saw an average credit of $1.01 on their bills. The average credit for commercial customers during the same period was $2.67. Each of the subsequent billing groups through November are also receiving credits.

Under the Weather Normalization Adjustment (WNA) program implemented in November, customer bills will receive a credit when the winter weather is colder than normal. Customers will see a surcharge when the weather is warmer than normal. Although the adjustment is common practice in many other states, VNG is the first company to receive approval to implement such a program in Virginia.

"The credit on customers' bills is positive news for the initiation of WNA," said Hank Linginfelter, president of VNG. "The WNA is working as it was intended. But customers need to be prepared that there may be a need for a surcharge if we have a winter that is warmer than usual. The WNA provides revenue stability so we can plan ahead to deliver the safe, reliable service that our customers depend on to heat their homes and operate their businesses at reasonable costs."

The weather normalization adjustment will be used during the winter heating season, typically November through March. VNG has committed not to file for a general rate increase for the next two years. This commitment extends the time since VNG's last rate increase in 1996 to at least eight years.

"The past two winters showed us that periods of extended cold weather followed by extended warm weather were disruptive to our gas customers and to VNG," said Linginfelter. "The WNA is designed to level things out, which in turn enables us to hold the line on our current rates at a time when energy prices are volatile."