Get ready for a smaller natural gas bill this summer, thanks to fracking.
That’s the message from UGI Utilities Gas Division, which plans to cut customers’ purchased gas rate by 7 percent, attributing the lower purchase price to abundant Marcellus Shale gas supplies.
“Nearly 90 percent of UGI’s natural gas supplies now come from locally produced Marcellus Shale, and our customers are benefiting from this plentiful, reliable supply,” Paul Szykman, vice president of rates at UGI, said in a statement. “The seven-year trend of moderating gas prices continues despite a second consecutive winter of below-normal temperatures and related record, or near record, customer demand.”
The utility is prohibited from making a profit on the gas portion of its bill. Customers are charged separately for the cost of transporting the gas to their homes.
Gas companies must file gas cost information annually with the Pennsylvania Public Utility Commission and can adjust it on a quarterly basis. UGI plans to adjust prices down again in December, pending the agency’s approval.
Beginning June 1, the monthly bill for a typical residential heating customer using 85 hundred cubic feet of natural gas will decrease from $82.13 to $75.98.
That bill will decrease to $74.03 if the utility’s second rate cut, proposed for Dec. 1, is approved.
Commercial and industrial customers will see similar decreases.
This article was written by Scott Kraus from The Morning Call and was legally licensed through the NewsCred publisher network.