Customers sign petition against gas rate hike
WINFIELD TWP — Some customers of the Herman Oil and Gas Co. are petitioning against a proposed 149 percent increase on their natural gas base rates.
Herman Oil and Gas applied in April for the rate increase with the Pennsylvania Utilities Commission.
The company said the increase is needed to maintain a safe level of service for its 419 customers. But some customers are concerned about the jump in price.
“I just think it’s crazy,” said Joe Rizzo of Winfield Township.
Rizzo and his wife, Kathleen Rizzo, started a petition to send to the PUC showing the outrage over the proposal.
Rizzo said many of the households in the township earn less than $40,000 per year and would have trouble paying the increased bill.
Under the proposed increase, the rate per MCF of natural gas per month will increase from $7.05 to $17.58. Customers also will have an additional $16 meter charge each month.
“My monthly bill is going to jump from $156 to $390,” Rizzo said, referencing his family’s January bill.
The increase is scheduled to go into effect July 1, but must be authorized by the PUC.
However, the president of the company said in April it is unlikely the PUC will complete its review by July 1.
Rizzo said he has about 50 signatures on his petition, although he said his door to door campaigning is limited because he doesn’t know which homes are customers of the company.
“We haven’t had anyone we’ve spoken with refuse to sign it,” he said. “Everyone thinks it is just insane and unjustifiable.”
Joanne Bricker of Winfield Township couldn’t believe the proposed hike.
“It’s absurd,” she said. “I would certainly like to have that jump in income.”
Bricker said she is thrilled to have Rizzo leading a petition.
“Joe has done a good job here,” she said. “We have a lot of older people here who won’t be able to pay the increase.”
Rizzo said the PUC will have a meeting locally if it hears enough feedback against the increase. He hopes his petition will help make that happen.
The township supervisors wrote that many of the township’s residents will be unable to afford the increase.
Rizzo said anyone interested in signing his petition can e-mail him at riz121@yahoo.com.
He plans on mailing the petition to the PUC within the next couple weeks.
Andrew Smith, the owner of the company since August, maintained his stance that the rates are needed to provide safe service.
“The bottom line is we can’t afford to keep a safe, reliable service without a rate increase,” he said. “We haven’t had a rate increase in 32 years.”
Smith said he was not aware of the petition circulating and added most customers who have called the company understood the need for a rate increase after speaking with him.
“We’ve had callers whose heating bill in March was a third of what they pay for TV,” he said. “One woman paid $28 in March. And we had some cold days that month.”
Smith added he does not believe the PUC will award the full requested increase, and was confident his company’s rates would still be lower than the competitor’s following the decision.
“Our customers will still enjoy lower rates,” he said. “I’m sure about that.”
