December bills for Vicksburg’s natural gas system will again have a surcharge, expected to remain in place for a year.

Approval by a 2-1 vote of the Mayor and Aldermen on Monday means the rate will rise by $1.20 per thousand cubic feet or $13 per month for the average homeowner’s bill.

It was the second consecutive month for a fuel surcharge with both coming on top of base rate increases approved in September.

Paul Rogers, strategic planner for the city, said the reason is simple: The gas fed through city lines costs $714,000 more than than rates would have generated.

&#8220The adjustments we’re doing now are based on the fluctuation of gas prices,” Rogers said. &#8220We were hoping gas prices would go back down, but gas prices haven’t gone back down.”

North Ward Alderman Michael Mayfield voted against the increase. &#8220I still don’t feel it’s justified,” Mayfield said.

The September increase was an overall 25 percent. It pushed the average winter bill to $122.21 and was accompanied by increases in rates for water, sewer and garbage collection services.

The new gas rates still weren’t enough to cover costs, so an increase for the November billing cycle pushed the average winter bill for consumers to $124.05. Rogers said the average December bill for consumers will now be around $137.85.

Unlike the base rate increase OK’d in September, the increases for November and December are tied to the wholesale price the city paid for fuel. Rather than impose the full added cost immediately, the increases are spread over 12 months and will phase out if prices drop.

&#8220We have an escalating commodity cost and we have to pay for it somehow,” said Mayor Laurence Leyens. &#8220We don’t control the price of gas or how cold it is and we sure don’t make a profit on this.”

Leyens said this is the best way to pay for the rising cost of natural gas, because the city spreads the increase over a 12-month period so residents do not see their bills double in price all at once. Although the city will continue the subsidy, he said the cost adjustment will keep the subsidy lower.

&#8220We’re paying 60 percent more for gas than we did last year,” South Ward Alderman Sid Beauman said.

Rogers said that Vicksburg residents are still getting lower rates than most U.S. residents because the local utility is operated on a break-even basis.

Nationally, fuel prices surged through the year, then skyrocketed after two hurricanes, Katrina and Rita, swept through production areas in the Gulf of Mexico and refining and distribution centers onshore. The cost of gasoline has been falling sharply on world markets and are now well below pre-Katrina pump prices. Natural gas rates are believed to have peaked, too.

In other business, the city board voted to authorize the mayor to execute the following interlocal agreements with the county: