Monday, December 12, 2011

Reduction in City's Purchased Gas Cost

The city announced Dec. 9 a nearly 8 percent decrease in the PGC (purchased gas cost) paid by the city’s natural gas customers. Effective with bills issued in January 2012, the PGC will decrease from $.650 to $.600 per Ccf (100 cubic feet of natural gas).

For example, the average customer who uses 70 Ccf per month will pay approximately $84.64 compared to a current price of $88.14. This is the second reduction this year and the fifth reduction over the last two years in the natural gas commodity.

The city of Richmond passes along the cost of the natural gas it purchases to its customers, dollar for dollar, without any markup. Customers will see an overall 4 percent decrease in their total bill.

City of Richmond natural gas bill components include the PGC cost, the customer charge and the distribution charge. City analysts periodically review and adjust rates up or down based on market and weather conditions.

The city offers free information and programs year-round to help customers manage their utility bills and seek assistance before bills become unmanageable. The city encourages customers to enroll in the Equal Monthly Payment Plan (EMPP), a program designed to spread payments out evenly each month or to apply for the MetroCare program, a heating bill payment assistance program for those who qualify. More information about these programs is available by calling 646-7000 or visiting DPU’s website.

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