Posted on 10/31/2009 6:23:05 PM PDT by thackney
The state Public Service Commission offered heartening news to cash-strapped consumers on Friday. Based on data submitted by the state's natural gas companies, the average resident can expect to pay nearly 40 percent less on their bills this winter compared to last.
Behind the decrease is a sharp drop in the wholesale price of natural gas that PSC Chairman David Armstrong said was "artificially high" last year due to what many consider to have been speculative investing in the commodity.
The PSC noted wholesale prices, which make up the largest portion of natural gas bills, are now at their lowest levels in six years. Also, the amount of natural gas placed in storage for use this winter is at historically high levels, according to the federal Energy Information Administration.
The state's five major natural gas companies expect their adjusted wholesale cost this November to be $5.61 per thousand cubic feet (Mcf). That's down 52 percent, or $6.09, from an average of $11.70 a year ago.
In August of last year, the wholesale cost peaked at $15.17 per Mcf.
The wholesale cost of gas accounts for the majority of bills and a typical residential customer using 10 Mcf next month will pay a total bill of $92.08, down 39 percent from $150.78 a year ago.
"Lower energy prices do not negate the wisdom of taking steps that will reduce energy consumption in the long term," Armstrong said. "Consumers would be wise to turn some of their immediate savings into permanent investments in weatherization and other measures that will pay off in coming years."
The PSC cautioned, though, that natural gas customers on budget plans will not see as dramatic a drop in their bills.
"The whole idea of the budget billing is to take the fluctuations out to the greatest extent possible, so because of that, you won't see the kinds of swing as people who aren't on those plans," PSC spokesman Andrew Melnykovych said.
But the bills will be lower. "If they haven't seen a downward adjustment in the budget billing yet, there will be one forthcoming," he said.
Bills will also be lower despite a recent hike in rates for Columbia Gas. The PSC this week approved an increase for the utility that will see residential customers pay $3.05 more in monthly customer charges, an increase from $9.30 to $12.35.
Charges to customers and delivery fees make up less than half of natural gas bills, but are where utilities make their profits. The majority is the cost of the gas itself, which, by law, is not allowed to be marked up.
About 44 percent of Kentuckians use natural gas to heat their homes. Those who heat with propane (10 percent) and fuel oil (3 percent) also will see lower costs.
The 39 percent of the state that uses electric heat are expected to see relatively little change in bills, the PSC said. The cost of coal, which is used to generate more than 90 percent of the state's electricity, has fluctuated less than other fuels.
Is this true?
I will love it. Our last gas bill was over 300.00 for a 2000 sq. ft. home.
We were thinking of closing off rooms this year. My girls have already moved to the warmer room upstairs and we were closing off our lowest level with blankets on the hallways.
I’ll believe it when I see it. I would be great. Bill from Feb. just over 400.00 for a 2900 sq. ft home.
They better not advertise it. Might encourage someone to put a new tax on it.
[[Natural gas bill avg. to drop 40% this winter]]
While Gasoline prices and taxes rise twice that amount- Swell
Oregonians have been told they will receive a 16 to 17% cut in monthly bills. Hmmm?
You expect gasoline prices to rise 80% above last year this winter?
Not likely at all.
It will vary by region. This was an article from Kentucky.
Natural Gas Prices by State
http://tonto.eia.doe.gov/dnav/ng/ng_pri_sum_a_EPG0_PRS_DMcf_m.htm
That is a damn understatement, for some damn reason speculators, scum of the earth, think they have a god given right to steal off of their fellow man and totally wreck this country.
When are the politician's going to grow a backbone and stop this crap.
Ditto here in Anchorage, the cost for NG had shot up from 2004 to 2008 by 77%. Now they tell us the price MAY drop ABOUT 16%.
If we can get it delivered of course.
The Muni is running drills in case flow/pressure drops to the point meters tip over. In that case thousands might get a bit chilly on one of wonderful -40 nights.
We just got back up oil heat installed and have room for the kids/grandkids.
Just wonderful.
The PSC cautioned, though, that natural gas customers on budget plans will not see as dramatic a drop in their bills.Hmmmm ... why can't we organize a 'cooperative', bid on the delivery on a contract (for gas), and take delivery through our local delivery supplier?"The whole idea of the budget billing is to take the fluctuations out to the greatest extent possible, so because of that, you won't see the kinds of swing as people who aren't on those plans," PSC spokesman Andrew Melnykovych said.
http://www.treehugger.com/files/2009/01/natural-gas-israel.php
Gas dropped to almost $2.00- now we’re closing in on $3.00 again, and the dems are bound and determined to tax any offshore drilling, and close down bids for more exploration etc- Obama has stated he would love to see Gasoline prices hit over $6.00 a gallon or more, and you watch- this issue will again rear it’s ugl;y head before Obama gets booted out of office next election- oh, and Obama just declared something like 200,000 acres offshore of Alaska as off limits to drilling/natural preserve- and he isn’t done hamstringing oil companies yet- So yeah, I think it’s a distinct possibility prices wil lrise steeply IF the dems get their way, as they have expressly stated they would like to (and it looks like they are)
Is this KY only, or will it affect all the states?
[[When are the politician’s going to grow a backbone and stop this crap.
]]
Right after hell freezes over (then they’ll NEED the lower priced oil and gas, and they won’t have it because they allowed these speculators to artificvially inflate the prices lol)
Most states should see a price drop.
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