Some gas customers could get $25 to end rate dispute
From the March 4, 2008 edition, Atlanta Journal Constitution
By Kevin Duffy
Customers of SCANA and Georgia Natural Gas who feel they were overcharged on their variable-rate plans would get $25 under proposed agreements approved Tuesday by the Public Service Commission.
The agreements would end the PSC's inquiry into complaints the marketers deceived legacy customers by not telling them a cheaper variable rate plan was available. Customers found out through media reports. GNG and SCANA have denied breaking any PSC rules or state laws.
The companies have until Thursday morning to agree to the proposed settlements offered by Commissioner Stan Wise and approved 3-1.
Under the GNG proposal, the state's biggest gas marketer would pay up to $2.5 million and not more than $25 per customer.
If more than 100,000 customers apply for the credit, the $25 amount would be reduced. After August, any leftover credits would be disbursed at the PSC's discretion.
The cap on the SCANA proposal is $1.25 million, which means 50,000 customers could receive $25 credits; more than 50,000 eligible applicants would mean a smaller credit.
Only customers who have stayed with GNG or SCANA but switched or will switch to a cheaper plan by July 31 could receive the refunds. For GNG customers, the switching period began Dec. 1, 2006; for SCANA it started March 1, 2007.
Last week, two lawsuits were filed against GNG and SCANA over the variable-rate controversy; they seek triple damages from the marketers and class-action status. The PSC's proposed settlements do not affect that action.
After his proposals passed, Wise ripped the PSC's consumer protection staff, saying they were unfair to the marketers and didn't fully inform all the commissioners.
Wise said, "these companies were indicted by staff and convicted by the Sandinista daily" — meaning the Atlanta Journal-Constitution.
After the meeting, he added "we've got the potential of a rogue staff."
Print this