Ines hopes that customers will be able to take advantage of these programs, but he said that Columbia Gas would work with the individual. Those who use propane and kerosene for heat are also facing cost issues. He saw a drastic increase from December to January and said a few customers have complained. The rest keep abreast of what s going on in the rest of the nation. Several factors have led to higher prices of heating fuel.
Suppliers commonly blame the colder winter for increasing demand and thereby increasing price.
A low amount of gas in storage, greater numbers of power plants using gas to produce electricity and a decline in drilling due to past low prices have increased the cost of natural gas too. As part of the deregulation of natural gas, the Federal Energy Regulatory Commission issued Order 636 in 1992. The order separated the sale of gas services and transportation of gas. Consequently, the FERC regulates the cost of transportation and states regulate the prices for services. The State Corporation Commission regulates rates of natural gas service in Virginia.