City of Richmond gas customers will notice a decrease of more than 8 percent in their total natural gas bills effective April 2012.
Richmond Mayor Dwight C. Jones announced today that the commodity cost, also known as the purchased gas cost (PGC) paid by the city’s natural gas customers will decrease from $.60 to $.50 per ccf (100 cubic feet of natural gas).
“Historic lows in the price of the natural gas commodity as a result of the abundance of shale gas combined with high storage volumes and efficiencies in natural gas infrastructure maintenance have created the opportunity for cost savings in this vital energy source,” said Mayor Jones. “We are pleased that city customers are able to benefit from this savings.”
The average customer who uses 70 ccf per month will pay approximately $77.64 compared to a current price of $84.64. The city of Richmond passes along the cost of the natural gas commodity it purchases to its customers, dollar for dollar, without any markup.
City analysts periodically review and adjust commodity rates up or down based on market and weather conditions.
City of Richmond natural gas bill components include the PGC cost, the customer charge and the distribution charge. Recent proposed increases to the natural gas utility bill would affect only the distribution charge and customer charge.