Virginia Natural Gas Weather Adjustment Program Saves Customers $3 Million - Customers Receive Discount Due to Cold Temperatures

February 27, 2003

Norfolk – Thanks to an innovative program initiated by Virginia Natural Gas (VNG), consumers have saved more than $3 million on their natural gas bills since November.

VNG reported today that the Weather Normalization Adjustment (WNA) program, which was approved in September 2002 by the State Corporation Commission (SCC), has resulted in discounts throughout most of the winter heating season. The average discount to date totals $17 for residential customers over a three-month period.

“In light of the very cold weather and relatively high natural gas prices across the country this winter, we are very pleased that our customers received some relief,” said Hank Linginfelter, VNG president and chief executive officer.

The WNA program is designed to level out highs and lows in customer bills when natural gas use is affected by weather conditions that are either colder or warmer than normal. The adjustment is applied to bills during the winter heating season. The past three months -- November, December and January -- were 46 percent colder than the same period a year ago.

The SCC approved the WNA program as part of a two-year rate plan. “We are thankful we were able to get the plan in place in time for this very cold winter,” said Linginfelter. Gas prices have been significantly higher this winter than last year but are about the same as they were two years ago.

Customers who are having difficulty paying their bills may contact VNG at 1-866-229-3578 to make payment arrangements.