Natural gas customers to see 21% price increase in August
The rising cost of wholesale gas will be passed along to roughly 80,000 local customers.
Richmond Department of Public Utilities natural gas customers will see an average 21 percent increase to their monthly bills beginning in August, reports the Richmond Times-Dispatch.
The typical monthly bill will be $41.88 compared to the current $34.64 average.
More from the Times-Dispatch:
The increase is the first purchased-gas cost adjustment for the utility since 2012, the city agency said. The gas utility serves about 80,000 customers in Richmond and Henrico County and parts of Chesterfield and Hanover counties.
By law, the price paid for natural gas is passed on dollar for dollar to customers without markup or profit. Entering the fall heating season, the department will review and adjust gas costs on a quarterly basis to reflect the price the agency pays for natural gas.
photo by Derrick Coetzee
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Nathan Cushing
Nathan Cushing is a writer, journalist, and RVANews Editor.
Notice: Comments that are not conducive to an interesting and thoughtful conversation may be removed at the editor’s discretion.
Please address the cause of the increase because most articles on natural gas are pointing out the glut of domestic natural gas supplied as a by product of fracking. Where is the disconnect?
As my wife can attest, I make a fair share of natural gas myself. I wonder if, like solar or wind, I can return some of it to the ‘grid’ and get a rebate.
The RTD article also states it’s the first cost adjustment since 2012, and it appears costs have risen since that time. http://ycharts.com/indicators/natural_gas_spot_price. Even though excess supply might affect prices in the short term, I thought the City negotiated their price over longer contracts…any energy experts care to comment?