PPL Gas Utilities announced a slight decrease today in the charge customers pay for the gas supply portion of their bill. The new rate, down 12 cents to $13.58 per dekatherm, applies to gas use beginning March 1 and reflects recent reductions in natural gas prices nationwide.
The gas supply portion of customers' bills is a pass-through charge to cover the cost of the gas PPL Gas Utilities purchases for customer use. PPL Gas Utilities does not profit on this portion of the bill.
PPL Gas Utilities charges customers based on gas use, measured in dekatherms, a unit of heat energy equal to 1 million British thermal units (BTUs). The energy in one dekatherm can run a gas furnace for 10 hours or dry 72 loads of laundry in a gas dryer.
Under the new rate, a residential customer who uses 8 dekatherms per month will see a decrease in the total gas bill from $150.60 to $149.65. The total gas bill for a commercial customer using 32 dekatherms will decrease from $537.91 to $534.09. The bill for an industrial customer using 173 dekatherms will decrease from $2,778.06 to $2,757.41.
"Natural gas prices have remained volatile throughout the winter months," said Robert M. Geneczko, president of PPL Gas Utilities. "Our approach to gas purchases focuses on protecting customers from this volatility as much as possible.
"To do that, we purchase a large portion of our gas in advance," said Geneczko. "When gas prices are rising, as they have much of the time in recent years, our rates don't rise as quickly as spot market prices. When spot market gas prices drop, as they recently did in response to a warmer than anticipated January, our prices are sometimes slower to respond."
Geneczko said PPL Gas Utilities continues to reach out to customers who are on limited or fixed incomes and who may be having a difficult time coping with higher heating costs.
PPL Gas Utilities will spend more than $1.5 million combined in 2006 on programs to help its most vulnerable customers.
The company also offers a budget billing program that enables customers, regardless of their income level, to manage high winter gas bills by paying in equal monthly installments over a 12-month period.
"We have many ways to help customers who are struggling to pay their gas bills," Geneczko said. "Customers with concerns should call us toll-free at 1-800-652-0550."
PPL Gas Utilities, a subsidiary of PPL Corporation (NYSE: PPL) provides natural gas delivery service to 75,000 homes and businesses in 34 Pennsylvania counties and a small portion of Maryland.