Utilities: Marcellus supply lowers bills for UGI customers

Utilities
Source: DollarPhotoClub

UGI Penn Natural Gas (UGI) announced that its purchased gas cost rates will decrease on June 1, 2015. As a result, the average residential heating customer’s bill will decrease by approximately 10.3 percent.

UGI will also submit its December 1 natural gas cost rate projection in an annual filing with the Pennsylvania Public Utility Commission (PUC). At this time, UGI projects an additional decrease of 3.2 percent from the rates implemented on June 1, 2015.

“Nearly 90 percent of UGI’s natural gas supplies now come from locally produced Marcellus shale, and our customers are benefiting from this plentiful, reliable supply,” Paul Szykman, vice president of rates at UGI, said. “The seven-year trend of moderating gas prices continues despite a second consecutive winter of below-normal temperatures and related record, or near-record, customer demand.”

UGI is required to file its gas cost rates annually for review with the PUC and may adjust these rates quarterly to reflect changes in wholesale natural gas prices. By law, utilities cannot earn a profit on the natural gas commodity portion of a customer’s bill. Utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.

Beginning June 1, the bill for a typical residential heating customer who uses about 89 hundred cubic feet (ccf) of natural gas per month will decrease from $93.83 to $84.17. If UGI’s proposed rates for December 1 are approved, that bill will decrease to $81.50.

The bill for a typical commercial retail customer using 26.2 thousand cubic feet (Mcf) per month will decrease from $226.99 per month to $199.51 on June 1, and decrease to $191.70 on December 1.

The bill for a typical industrial retail customer using 405 Mcf per month will decrease from $3,041.65 per month to $2,616.75 on June 1 and decrease to $2,510.51 on December 1.

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