CHARLESTON, W.Va. (WSAZ) --The W.Va. Public Service Commission has ordered natural gas utilities to lower the purchased gas portion of their rates for the upcoming heating season. The lower interim rates will go into effect November 1. Final rates will be set in early next year.
According to a press release, Hope Gas customers will see their purchased gas rates decrease 12.35% from $6.25 to $5.48 per Mcf. The rate for Equitable Gas is being reduced 33.88% from $4.90 to $3.24 per Mcf.
Consumers Gas, Bluefield Gas, Blacksville Oil & Gas, Canaan Valley Gas, Lumberport-Shinnston Gas, Southern Gas, Standard Gas, A.V. Company, Tawney Gas Services and Union Oil & Gas will all be decreasing their purchased gas rates.
Mountaineer Gas will see the purchased gas portion of its rates go from $6.11 to $4.98 per Mcf, a decrease of 18.5%.
Mountaineer Gas has a base rate case pending before the Commission so the total rates have not yet been determined.
Purchased gas adjustment (PGA) proceedings provide for annual rate adjustments based on an estimate of future costs utilities will pay for gas from their suppliers for the period of November 1 through October 30 of the following year and a true-up of actual costs for the previous year.
Customers’ gas rates are adjusted annually to account for differences in the cost of gas in PGA cases. The PGA accounts for approximately two thirds (2/3) of the residential gas customer’s bill.
The Commission does not regulate the supplier price which is determined by competitive markets, but does examine the gas purchasing practices of gas utilities and reviews the reasonableness of those practices.
The PGA is solely a pass-through of gas costs and does not include a profit for the utility.