| Status: In theory, all residential customers in the State are allowed to choose natural gas suppliers, but virtually all customers still purchase gas from a local distribution company (LDC) because no marketers are offering merchant services that would be an alternative.
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| Overview: Unbundled service has been “on the books” to all natural gas customers in West Virginia since 1986. Under Senate Bill 117, passed in 1983, intrastate pipeline companies and local distribution companies (LDCs) were required to be common carriers. The procedural laws were completed in 1986 and covered all customer classes. In order to receive unbundled service, customers must install metering equipment or pay standby charges. According to the Public Utility Commission of West Virginia and LDCs representatives in the State, there are currently no marketers or aggregators active in the State and only about 100 residential customers received unbundled service in 2005. These customers have independent arrangements with producers or well owners for natural gas supply that is transported by the LDCs. Based on the most recent Energy Information Administration data for 2004, only 7 of the State's 358,027 residential customers were receiving unbundled service. In 1996, the Public Utility Commission of West Virginia initiated a general investigation into ways to make customer choice easier by pooling customers, and filed proposed rules in June 1998. However, no demand has materialized for that type of service. Currently, pooling arrangements are used for interruptible customers (generally industrial or large-volume commercial users).
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| EIA State Data: In 2004, West Virginia had 358,027 residential customers who consumed 30 billion cubic feet (Bcf) of natural gas at an average price of $10.91 per thousand cubic feet. The commercial market was much smaller, at 25 Bcf and 34,932 consumers. The average price paid by commercial customers for natural gas purchased from LDCs was $10.13 per thousand cubic feet.
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| Eligibility/Participation in Retail Choice Programs:
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Status as of December 2005: Number of Customers
|
Customer Type |
Total 2004 |
Eligible December 2005 |
Participating December
2005 |
Total
|
Percent of 2004 Total |
Total |
Percent of Eligible |
Percent of 2004 Total |
|
Residential |
358,027 |
358,027 |
100 |
100 |
(*) |
(*) |
|
Commercial |
34,932 |
34,932 |
100 |
376 |
1.1 |
1.1 |
|
Total |
392,959 |
395,135 |
100 |
476 |
0.1 |
0.1 |
|
(*)
= Less than 0.05 percent.
Sources:
Total 2004
Energy Information Administration,
Natural Gas Annual
2004 (December 2005). Eligibility and
Participation: Public Utility Commission of West
Virginia. |
|