Natural Gas Cost Lowered
Mayor Dwight C. Jones announced an 18 percent reduction in the purchased gas cost (PGC) rate charged by the City Department of Public Utilities in a press release on Friday. Beginning with October bills, the average residential customer using 70 cubic feet of natural gas per month will pay approximately $91.75 compared to the current bill of $102.95, an 11 percent reduction. Full Press Release
So those of us who just had our budget payment *increased* in anticipation of higher gas costs will see that amount lowered, right?
I’m still trying to figure out if we pay the same cost the city does for gas plus a consistent extra amount, and the city’s cost is going down 18%, why our bills are going down 11%. My math skills are rusty, though.
(My math skills aren’t stellar, but I can still do percentages. From the press release…) “The City passes along the cost of the natural gas it purchases to its customers, dollar for dollar, without any markup.” (Plain talk, makes sense… but then:) “Beginning with the bill customers receive in October 2009, the PGC will decrease from $ $.895 to $.735 per 100 cubic feet of natural gas.” (That’s the -18% reduction.) “As a result, the average residential customer who uses 70 Ccf per month will pay approximately $91.75 compared to a current bill of $102.95.” (That’s the -11%, reduction. Hey, what about that “dollar for dollar” part? David Hathcock, any input?)
You pay for more than just the gas…you also pay transmission costs, infrastructure costs, etc.
I know, hence the “plus a consistent extra amount” part of my comment. Isn’t the only variable the PGC? Seems like that would still be more than 11%.
Try the city’s website at richmondgov.com, then the link to public utilities. There is a page for natural gas rates. I think there may also be other material, printed or otherwise, explaning gas pricing.