Oxford residents and Miami University students, who may have been overcharged for gas in the past, can now maintain a warmer house at a cheaper rate this winter due to lower charges issued from the Oxford Natural Gas Company.
According to a press release sent to Oxford Mayor Jerome Conley Oct. 15 from the office of Service Director Michael Dreisbach, the Public Utilities Commission of Ohio (PUCO) released an order requiring that the Oxford Natural Gas Company reduce its service rates issued to the Oxford community.
Documentation filed Oct. 10 from PUCO states the new prices reflect the rates suggested from the city as well as an overcharge of $409,000 the Oxford Natural Gas Company issued its customers.
The reduction, ordered Sept. 19, stems from a rate renewal the Oxford Natural Gas Company requested in 2006, regarding an increase in gas pricing, according to Oxford City Councilor Alan Kyger. However, Kyger said the city researched the issue, but rather than approving the request to increase pricing, the city suggested the rate of gas should be deceased.
"The city of Oxford was obviously concerned about the ratepayers of the Oxford community getting the best possible rates," Kyger said.
Rather than maintaining the general service rate of $3.05 per Mcf, which refers to 1,000 cubic feet of natural gas, the city stated the rate should be reduced to $2.39, a 22 percent decrease. In addition, the city of Oxford also suggested the $8 monthly service charge be reduced to $6.50, a 19 percent decrease.
According to Shana Eiselstein, spokeswoman for PUCO, the organization began investigation upon involvement in the stipulation between the Oxford Natural Gas Company and the Oxford administration.
"The commission reads and evaluates the stipulation and puts it through a three-part test," Eiselstein said. "The commission wants to know if the settlement has resulted in serious bargaining from the parties involved, that the entitlement does provide benefits and to make sure the settlement does not violate any principles or practices."
However, during review of the service charge dispute between the city of Oxford and the Oxford Natural Gas Company, an error was found within the billing history of Oxford residents revealing community members had been overcharged.
Although the Oxford Natural Gas Company was unavailable for comment, PUCO ordered that the rate the city of Oxford recommended be implemented in addition to a $0.20 credit application to the new rate until the overcharged amount, $409,000, has been compensated. To balance the reduced prices, miscellaneous charges such as returned check charges and credit check fees will be increased.
The decision from PUCO has rendered several opinions pertaining to the lower gas charges as well as the excessive charges from the Oxford Natural Gas Company. Oxford Mayor Jerome Conley said the lower rates would be good for the Oxford community.
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"The city of Oxford is very pleased with the decision rendered by PUCO," Conley said. "We hope this ruling will allow our citizens to adjust to the upcoming winter charges as they deal with their families' budgets. We will continue to work with (the Oxford Natural Gas Company) to implement this ruling."
Although the Oxford administration has not provided information stating the overcharges were intentional, Miami University junior Jennifer Goodwin, an off-campus resident, said the changes are good, but she is not pleased with the excessive charges.
"I'm surprised that they were overcharging and I'm skeptical if they were trying to scam college students who probably don't know any better because this is the first time they are paying their own bills," Goodwin said.
Although Goodwin said the lower charges are good, she questioned how the Oxford Natural Gas Company will refund overcharges to residents who have left the Oxford area or students who have graduated.
"It'll lower our bill costs, which is good," Goodwin said. "It's good that they're making up what they have overcharged. Being a bill-paying resident myself, I am satisfied with a lower bill charge."
With PUCO's order, the new gas rates will be reflected in November's service bill.
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