Reduction in natural gas costs announced by Mayor
From the City of Richmond’s Department of Public Utilities: Mayor L. Douglas Wilder today announced an 18 percent reduction in the purchased gas cost (PGC) rate charged by the City Department of Public Utilities (DPU). This increase is due primarily to market conditions that have shown a decline in the price of the commodity since […]
From the City of Richmond’s Department of Public Utilities:
Mayor L. Douglas Wilder today announced an 18 percent reduction in the purchased gas cost (PGC) rate charged by the City Department of Public Utilities (DPU). This increase is due primarily to market conditions that have shown a decline in the price of the commodity since July 2008.
“It’s important for the public to know that we undertake rigorous measures to keep gas utility costs as low as possible and, when the City is able to pass along utility savings to our customers, we readily do so,” the Mayor said. “The City passes along the cost of the natural gas it purchases and delivers to its customers, dollar for dollar, without any markup.”
Another contributing factor to the cost decrease is the Mayor’s natural gas prepay program that was approved by City Council in September 2008. This program will save DPU customers approximately $1.5 million for the current fiscal year and $23.8 million for customers in future years.
Beginning with the bill customers receive in November, the PGC will decrease from $1.450 to $1.185 per Ccf (100 cubic feet of natural gas). As a result, the average residential customer who uses 70 Ccf (100 cubic feet of natural gas) per month will pay approximately $122.25 compared to a current bill of $140.80, a nearly 13 percent reduction.
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