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4 Sep 2011

Philadelphia Gas Works to decrease natural gas rates

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September 4, 2011 Category: Local Posted by:

The Philadelphia Gas Works (PGW) today announced that it will decrease what residential customers pay for natural gas. The average residential heating customer will pay about 2.2 percent less per month for the next three months. The change reflects a decrease in the forecasted price of the gas purchased from suppliers.


The new cost for gas will change from $1.56 per Ccf to $1.52 per Ccf. Residential heating customers will pay $1.52 per one hundred cubic feet (Ccf) of natural gas beginning September 1, 2011. The price for PGW’s commercial, industrial and municipal customers will also decrease on September 1, 2011.


The rate will stay in effect through December 1, 2011, when PGW will determine, based on market conditions, whether or not the rate should change.


“On behalf of our customers, PGW is committed to purchasing the lowest priced natural gas that we can,” said Craig White, President and Chief Executive Officer for PGW. “In addition, as we move into the winter heating season we encourage our customers to learn about our assistance and rebate programs and ways to conserve and save all year long by visiting”


The company anticipates that its rates should remain stable, based on current market projections, producing savings for all of the company’s customers compared to recent years. PGW’s residential natural gas rates are made up of two main components: a supply charge and delivery charge:


  • The supply charge is the part of the bill that reflects the amount of gas used by the customer. This charge is what PGW pays for the gas and is passed on to the customer without markup.
  • The delivery charge includes the cost of delivering natural gas to the customer’s meter, distribution system maintenance and customer billing costs, as well as weather adjustments.
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