MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Rules

By: Senator(s) Simmons, Horhn, Walls

A CONCURRENT RESOLUTION MEMORIALIZING CONGRESS TO APPROPRIATE ADDITIONAL FUNDS TO ASSIST THE ELDERLY AND LOW-INCOME CITIZENS OF THIS STATE WITH THEIR NATURAL GAS BILLS, AND TO TAKE ANY REGULATORY ACTION NECESSARY TO ADDRESS THE DRAMATIC INCREASE IN THE PRICE OF NATURAL GAS.

WHEREAS, natural gas is an essential commodity which is used by individuals primarily for cooking and heating; and

WHEREAS, the demand for natural gas has increased in recent years because of a number of factors, including colder winter temperatures, the start of operations at new gas-fired electric power generating units, and increased new home construction, which in turn increases the use of natural gas for cooking and heating; and

WHEREAS, the supply of natural gas has remained fairly flat over the past few years and although exploration and development of natural gas has increased this past year, the increase has yet to be reflected in the market; and

WHEREAS, because of a lag in supply in response to a recent surge in demand, the market has reacted by increasing the average wellhead price for natural gas; and

WHEREAS, residential customers of natural gas are expected to pay as much as 40% more on their natural gas bills this winter as compared to last winter, in response to the increased wellhead price for natural gas; and

WHEREAS, the rapid rise in natural gas prices over the last few months has raised concerns about the effect those increases will have on citizens of this state, particularly the elderly and those with a low income who are unable to absorb the increased costs because of income and budget constraints; and

WHEREAS, the dramatic increase in natural gas prices could potentially affect the health and comfort of Mississippi citizens, and in some cases could even be life threatening, if persons are disconnected this winter because they are unable to pay their natural gas utility bill; and

WHEREAS, while there are currently some government and utility provided low-income energy assistance programs available to persons on a limited budget, because of the extreme situation citizens of this state are facing, those programs will probably not be able to assist everyone who will be in need; and

WHEREAS, Mississippi recognizes the need to provide additional financial assistance to the elderly and low-income citizens of this state to help them pay for the higher cost of natural gas; and

WHEREAS, Mississippi further recognizes that additional regulations and investigative hearings by the Federal Energy Regulatory Commission may be needed to solve this natural gas dilemma:

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF MISSISSIPPI, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN, That we do hereby memorialize Congress to appropriate additional funds to assist the elderly and low-income citizens of this state with their natural gas bills, and to take any regulatory action necessary to address the dramatic increase in the price of natural gas.

BE IT FURTHER RESOLVED, That copies of this resolution be furnished to President George W. Bush; the Mississippi congressional delegation; Curt Hebert, Jr., Chairman of the Federal Energy Regulatory Commission; and be presented to the Capitol Press Corps.