EDITORIAL: The natural (gas) state, or maybe we should say the ... - Arkansas Online

EDITORIAL: The natural (gas) state, or maybe we should say the state of natural gas

Summit Utilities is in the news again. You may recall reports from several weeks ago about ratepayers whose bills were high for reasons they couldn't figure. Which is why states have public service commissions in place. And attorney generals to keep an eye on things.

The paper reports that the "problems began in November after the utility converted ratepayers to the billing and customer service systems" from CenterPoint to Summit. The complaints were in the thousands and "commonly cited what they perceived as excess monthly charges and problems in having their payments recorded properly by the company."

The utility claimed that natural gas prices are generally higher during the winter months and that customer bills usually go up at that time of year. That's generally true, but the problem in this case is that customer bills were going up at a time when natural gas prices were not only coming down, but had been coming down for months.

In fact, the Henry Hub Spot Price for natural gas in 2022 peaked at $8.81 per million BTU in August. In December it had dipped to $5.53, and by March it had plummeted to $2.31. Last month it averaged $2.16.

Some of this was due to a relatively mild winter that didn't require substantially higher volumes of natural gas. There was plenty of low-cost natural gas supply because demand was not running high.

Because of the complaints, Summit voluntarily waived its commission- allowed 10 percent late charge for the first $30 and 2 percent for the remaining balance. Further, the company suspended disconnections.

Last month, however, it let customers know that this relief would end on July 1. The state's official (and capitalized name) Public Service Commission has other ideas.

The PSC ordered Summit to continue the suspension of fees and disconnects and announced it would re-evaluate the problem in "approximately 60 days."

Summit's response to the PSC was that it was "not applicable because this docket was not initiated by a customer complaint and is not related to a disconnection," an argument that fell on deaf ears by the commission.

Re-evaluating this situation in approximately 60 days means that ratepayers have until at least mid-July to not be charged late fees or be disconnected. However, because Summit's billing "system" seems to be in the middle of this dust-up, the commission would be doing Summit's customers a favor by continuing the policy indefinitely until Summit can convince the PSC it has addressed whatever glitches may be in its system.

One thing the PSC, the company, and most responsible ratepayers should agree on: Customers shouldn't let their bills get out of whack. This isn't the federal government forgiving student loans. You'll have to pay for the natural gas you use.

Even if a shut-off notice won't be coming this week, it could come this summer. And letting bills slip by for months is a good way to get in a bind.