Soon, residents may open their natural gas bills with a groan.
As soon as this week, state legislators could approve a bill that would impose an impact fee on natural gas producers. Right now, Pennsylvania is the only state which doesn’t tax its natural gas production.
Eventually, that impact fee will trickle down to consumers who will have to pay the extra cost in the form of higher bills.
Now, customers in this area might not feel that hit right away, thanks to higher storage levels.
Since 2006, domestic natural gas production has increased by 20 percent, with storage levels above the five-year average, according to Columbia Gas of Pennsylvania.
For example, effective Jan. 1, the average monthly Columbia Gas bill is estimated to be $70.97, a 22 percent decrease from the average monthly bill of $90.44 during the same period last year.
If the bill is approved, the money from the impact fee would go toward bridge repairs and other statewide infrastructure improvements.
However, I believe, this impact fee will come with a price.
I can’t believe that natural gas producers will simply absorb the fee and keep charging the same price for their product. That doesn’t make any sense.
What I expect to happen will be that the fee will be passed down the line until it gets to the consumer. That is the way it works. People can march, demonstrates and hold all the rallies that they wish. Those efforts are not going to change the way business works.
So, at least this time, you’ll know why you’re paying more to keep your home warm or cook your food.
