Gas bills to jump in June:
Company says customers to see
a 9.9 percent increase in their costs
May 17, 2007 - Knight Ridder Tribune Business
News
Author(s): Jerry Lynott
May 17--Rising natural gas costs will push monthly bills higher for
UGI Penn Natural Gas customers next month and again in December, the
utility company said Wednesday.
The combined increases will add $19.75 a month to a typical
residential customer's bill based on usage figures provided by the
utility. The cost increases to be submitted to the Pennsylvania Public
Utility Commission on June 1 reflect a quarterly adjustment in the
amount the utility pays for gas and an annual rate it expects to pay as
of Dec. 1. The PUC routinely approves the quarterly adjustment but
reviews annual rate filings before they go into effect. The purchased
gas cost accounts for more than half of the monthly bill. The June 1
quarterly adjustment will raise monthly bills approximately 9.9 percent
for a residential customer who uses 100 hundred cubic feet a month.
The customer's bill will increase to $145.05 from $131.92 a month. If
the PUC approves the Dec. 1 incr ase of 4.6 percent, the customer's
monthly bill will increase to $151.67. The June adjustment will be the
first purchased gas cost increase for the utility since December 2005,
when it was formerly PG Energy. At that time the cost was $1.21 per
hundred cubic feet of gas. The cost dropped steadily to $.906 per
hundred cubic fe t in December of last year and has held there. The
utility said it will raise the purchased gas cost to $1.03 per hundred
cubic feet next month and, pending PUC approval, to $1.10 on Dec.
1. Since it last lowered the cost in December 2006, the utility has
had to deal with "colder than normal temperatures" in late winter and
early spring of this year, factors that have contributed to the higher
purchased gas cost, said Bruce M. Davis, vice p esident of gas supply
and marketing with the utility. In a prepared statement, Davis said,
"our current projections for the next heating season result in higher
natural gas prices." Pushing the price up are national weather forecasts
for a hot summer, an active hurricane season and "continued globally
high energy prices," he said. Should the projections change, the utility
can adjust the rate on either a quarterly or interim basis in reaction
to market conditions.
The rates apply to all utility customers -- residential, commercial
and industrial. Commercial customers who typically use 438 hundred cubic
feet a month will pay $579.53 a month on June 1, up from the current
rate of $522.04. The December increase will raise the monthly bill to
$608.52. Likewise, an industrial customer using 3,160 hundred cubic feet
a month will pay $3,846.13 next month instead of $3,431.40 under the
current rate. The customer's monthly bill will rise again in December to
$4,055.31 a month. Wilkes-Barre based UGI Penn Natural Gas has
approximately 158,000 customers in its 13-county service area in
northeastern and central Pennsylvania.
It is a wholly owned subsidiary of UGI Utilities Inc. BY THE NUMBERS
19.75 Added cost of two price increases to a typical residential
customer's bill. 9.9 percent Approximate amount of price increase by
June 1. 4.6 percent Approximate amount of Dec. 1 price increase if
approved by the PUC. Jerry Lynott, a Times Leader staff writer, can be
reached at 829-7237.
© Copyright 2007 NetContent, Inc.
Duplication and distribution restricted.
The POWER REPORT
PowerMarketers.com · PO Box 2303 · Falls Church · VA ·
22042
To subscribe or
visit go to: PowerMarketers.com
PowerMarketers.com@calcium.netcontentinc.net
|