Retail Gas Prices: Up, Down and Sideways

LCG, Feb. 28, 2001—With natural gas prices dropping nationwide and with warmer weather ahead, customers of gas utilities might be forgiven if they looked forward to an easing of the record prices they have been paying for the fuel.

Some will be disappointed. Out of three utilities checked, customers of one will get a price cut, those of another will see their bills increase, and those of a third won't see any difference at all.

Columbia Gas of Virginia – the old Virginia Natural Gas Co. – plans to cut is rates by an average of 20 percent beginning tomorrow. The company will reduce its gas charge from $1.132 per hundred cubic feet to $0.905 per hundred cubic feet.

When the base household rate of $12.25 and the delivery charge of 29 cents per hundred cubic feet delivered is figured in, a typical residential customer can expect a 15 percent reduction on his overall gas bill.

Out west, Oklahoma Natural Gas Co. filed papers yesterday with the state Corporation Commission saying its gas rate will stay at $0.714 per hundred cubic feet at least through March, if the regulators approve. The company had earlier sought $0.827 per hundred cubic feet but the commission turned it down. The difference will be recovered later.

Farther west, gas prices are going up – at least in the service territory of Public Service Co. of New Mexico. It will be quite a jump at that, according to figures provided by PNM spokeswoman Julie McCabe. March rates will be 75.63 cents per therm, compared with 57.42 cents for February.

McCabe rationalized that the impact wouldn't be that great because PNM's customers typically use less gas in March.

That's typically. It's snowing today in New Mexico.

http://www.energyonline.com/news/articles/b28-3gas.asp

-- Martin Thompson (mthom1927@aol.com), February 28, 2001