PECO Lowers Natural Gas Rates 18.8 percent December 1
PECO will lower its natural gas rate by 18.8 percent for its 484,000 natural gas customers in the Philadelphia suburbs, effective December 1.
An average residential heating customer uses 160 ccf per month during the heating season.
PECO said its rate decrease will save customers almost $50 in December, compared with the current gas rate ($261.58 for 160 ccf down to $213.43, including taxes and other monthly charges).
Actual usage depends on a customer’s billing cycle, weather, the size of the home and its energy efficiency, and the number of gas appliances in the house, such as heater, water heater, laundry and kitchen appliances, and fireplace.
Now with this decrease combined with another cut September 1, PECO’s natural gas rate will be virtually the same as last December, as weather turns much colder and demand increases.
Natural gas wholesale prices spiked last winter through June, resulting in gas rates for local consumers to rise from $1.28 per ccf, or hundred cubic feet (the unit of measurement on most customer bills) to $1.68 per ccf in June.
For energy saving information and payment options, consumers should visit www.peco.com/save. For more information about natural gas or energy prices generally, visit www.aga.org or www.eia.doe.gov.
Mark Alden, PECO vice president, Gas, said the company buys wholesale natural gas in a variety of ways to manage its overall supply costs and mitigate market volatility for customers.
“PECO has worked with the PUC to manage a diversified portfolio approach to buying gas for our customers. This approach has helped us provide customers competitive gas prices when the market prices fluctuate like they have in recent years,” Alden said. “We buy some of our gas under short- and long-term contracts with suppliers, store gas during off-peak months to meet demand during the coldest days, and try to limit spot market purchases during the winter as much as possible.”
Unlike gasoline, oil or propane dealers, PECO can only adjust the “purchased gas cost” (PGC) portion of its gas rate each quarter, if necessary, to reflect changes in the commodity market prices. The charges are a pass through without any utility markup. The PGC represents roughly three-quarters of the total bill, while PECO’s customer service and delivery charges cover the remainder.
PECO said the new rate reflects recent gas costs as well as projected costs for buying gas on behalf of its customers through November 2009. (The PGC covers three line items on a customer’s bill – the natural gas supply charge, the balancing service charge, and gas cost adjustment.)
This gas rate change does not affect PECO’s electric rates. PECO’s electric rates will remain the same in 2009 and 2010, under agreements with the state Public Utility Commission (PUC), which reviews and approves utility rates.
In October, the PUC approved other changes in PECO’s rates for suburban natural gas customers, effective Jan. 1, 2009.
For the first time in more than 20 years, PECO’s fixed customer and variable delivery charges will increase. The monthly charge will go from $1.29 per ccf in December 2008 to $1.38 per ccf in January 2009. PECO said the increase in these charges cover higher operating costs, greater investments needed in the local gas delivery system, and expanded energy efficiency and customer assistance programs. Customers will receive more information about these changes next month. For more information, see this news article.
Things consumers should know about their PECO utility bill:
· The bill reflects PECO’s rates and the customer’s energy usage during the billing cycle, and taxes.
· Usage is affected by the weather during the heating season and the number of household appliances and their energy efficiency. Most households are using more appliances, so consumers should buy the most energy efficient one you can afford when shopping.
· Winterizing your home can save money. The colder it is outdoors, the more a drafty house will lose heat. Simple weatherization and other saving tips are available on PECO’s Web site, www.peco.com/save.
· If customers are having trouble paying their utility bill, PECO urges them not to put it aside. Customers should call PECO customer service at 1-800-494-4000 for credit and payment options and possible assistance programs.
· Customers need to be aware of how they use energy around the house so they can look for savings and manage their monthly costs.