Customers using natural gas in north Jefferson County should see smaller bills soon.

Starting in February, the Fultondale Gas Board will reduce its rates by 25 percent, according to Jim Lowery, superintendent of the gas board and mayor of Fultondale.

“We are aware that our customers have experienced unusually high energy bills this winter,” said Lowery. “We will be reducing February gas rates significantly by making improvements in our usage estimates. Customers should see immediate relief on their next bills and throughout the remainder of 2015.”

The gas board hired a rate study company, Kel-Ar Energy Consulting, to help it find a way to reduce rates. Kel-Ar made four recommendations to help the gas company lower customers’ bills:

• make an immediate reduction from January’s rates based on a cost-of-gas adjustment

• use a different rate formula that would spread costs more evenly throughout the year

• reduce the annual amount of capital costs to be recovered from the board’s “aggressive cast iron replacement and system upgrade program over the years”

• avoid franchise agreements, namely with Gardendale, that have “hindered the utility from being able to consistently meet its financial requirements.”

Lowery said the gas board has already adopted the recommendations.

The issue of franchise agreements has stirred a bit of controversy during the past year.

Earlier this month, Gardendale officials sent a letter to the gas board stating that the board is in violation of its franchise agreement with Gardendale because the board did not purchase its 2014 business license, and also because it was charging Gardendale customers more than the limit imposed by the agreement.

Lowery said the gas board has purchased a business license, but confirmed there is no franchise agreement. However, he said a franchise agreement is not required.

Lowery acknowledged that the Fultondale Gas Board’s rates are higher than some other gas companies’ rates, but added that other gas companies in the state have higher rates than Fultondale’s.

He said one advantage of a smaller gas company is that it will try to help customers when they have higher-than-normal bills, especially during the winter.

“Some people are still paying their winter bills in the summer. We work with people,” said Lowery. “Most of us are on fixed incomes and live week to week. When something like this happens [a rate increase], it affects all of us. But we’re taking action.”