Friday, March 23, 2012

City Lowers Natural Gas Commodity Cost

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.

1 comment:

  1. Nat gas has absolutely plummeted in costs... was waiting to hear from the city on lower pricing. It has however plummeted WAY more than the 8.3% cost reduction the city is passing along here.

    This statement:
    "The city of Richmond passes along the cost of the natural gas commodity it purchases to its customers, dollar for dollar, without any markup"

    and this one:
    "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."

    Those don't exactly jive now do they?

    Let's see... geez nat gas is down almost 50% in the last year alone... http://www.tradingeconomics.com/commodity/natural-gas

    So let's pass along an 8% savings to the citizens of Richmond and we'll jack up their "distribution and customer charges" to make up for it and maybe throw the money at a theater renovation or similar.

    NICE.

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