PECO's Natural Gas Rate To Decrease 10 Percent Lower National Demand and Strong Supply Drives Gas Supply Costs Down
PHILADELPHIA, Feb 25, 2009 (BUSINESS WIRE) -- PECO announced today it would lower its natural gas rate by 10 percent on average for its 485,000 suburban gas customers, effective March 1. Combined with two previous quarterly decreases, the gas commodity portion of PECO's natural gas rate will now be the lowest it has been since December 2003.
An average residential heating customer who uses 80 ccf (hundreds of cubic feet) of natural gas a month will now pay about $109 per month. The gas rate for average usage will drop from $1.51 per ccf currently to $1.36 per ccf. Last March, the average PECO customer paid $1.47 per ccf. Actual usage depends on a customer's billing cycle, number of gas appliances, weather, and the size and energy efficiency of the home.
The company can adjust its gas commodity rate quarterly based on changes in the wholesale market. PECO's natural gas bill is primarily made up of two parts: the delivery charge, which is the cost of moving natural gas to customers and makes up about a third of the average residential bill; and the purchased gas cost (or pgc) represents about two-thirds of an average residential bill and reflects PECO's costs to buy gas on the wholesale market. PECO does not mark up the gas commodity charge, which is a pass through of wholesale costs.
"Natural gas is a great value as overall supply is strong and demand has dropped in recent months across the nation," said Carlos Thillet, manager of Gas Supply and Transportation, "This should be welcome news for our customers while colder weather remains with us. Even with this decrease, any customer who needs help with managing their utility costs should contact us, so we can help."
If a customer has trouble meeting their energy costs, PECO encourages consumers to visit www.peco.com/save for more information.