Lower prices for Columbia Gas of Kentucky customers
8/20/2009 10:37:10 AM
Columbia Gas of Kentucky has received approval from the Kentucky Public Service Commission (PSC) for its most recent Gas Cost Adjustment (GCA). Columbia Gas of Kentucky’s gas supply cost will decrease 54 percent to $3.6117 per Mcf (1,000 cubic feet) from the previous price of $7.9067 per Mcf. This price is effective August 27, 2009 and will remain in effect until the next scheduled Gas Cost Adjustment in December 2009.
This most recent decline in natural gas prices reflects a 75 percent decrease from September 2008 when prices were at near record-high levels.
Columbia Gas of Kentucky adjusts its prices quarterly to reflect current market conditions and this adjustment reflects the lower gas supply cost of natural gas that Columbia expects to pay for its customers. With this Gas Cost Adjustment, a Columbia residential customer using an average of 6 Mcf of natural gas per month would see their monthly bill decrease from $67.96 to $42.19.
A customer’s monthly bill is comprised of two primary components: the gas supply cost and delivery costs. The delivery charges cover the cost of delivering the gas to the customer’s home or business through the company’s pipeline infrastructure, as well as line inspection, repair, 24-hour emergency service, etc. The gas supply cost includes the commodity cost, interstate pipeline charges and storage costs. The gas supply cost charges typically account for approximately 60 to 80 percent of a customer’s monthly bill.
Despite this drop in natural gas prices, Columbia encourages customers to enroll in the Budget Payment Plan during the August enrollment period. The Budget Payment Plan spreads winter heating costs throughout the year and allows customers to pay the same amount every month. To enroll in the Budget Payment Plan, customers can simply pay the budget payment amount shown on their August bill or call 800-432-9345 between 8am and 5pm, Monday through Friday for enrollment through a customer service representative.
Natural gas distribution companies are not permitted to earn a profit on their gas commodity costs and Columbia Gas of Kentucky passes the cost along to customers without markup.
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