Jan 5, 2009 6:16 pm US/Eastern
Why Haven't Natural Gas Rates Plunged?
If you are a customer of Dominion Peoples Plus, the gas supplier, you can get lower rates with one phone call. The number to call is 1-800-400-5648.
PITTSBURGH (KDKA) ―
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As of January 1, Equitable, Columbia and Dominion Peoples Gas did lower the price of natural gas about 10 percent. The question is – why not more?
KDKA
When natural gas prices were climbing, gas experts pointed to the price of oil and told us the two are connected.
Now that oil prices have plunged, why not natural gas prices too?
As of January 1, Equitable, Columbia and Dominion Peoples Gas did lower the price of natural gas about 10 percent. The question is – why not more?
In July, we were paying $4.11 a gallon for gasoline. Today, it's about $1.70. In July, oil cost $1.47 a barrel and today it's $47 a barrel.
In July, natural gas prices at the well cost between $12 and $13 per MCF. Today it costs between $5 and $6 per MCF.
Pennsylvania Consumer Advocate Sonny Popowsky says natural gas prices have turned upside down.
"Natural gas prices have traditionally low in the summer, high in the winter but this year it has been just the opposite," he said.
So why not drastic drops in natural gas prices?
"Over the last six months, we have seen a substantial decline in natural gas prices and [it is] starting to be reflected in gas prices this winter. We are seeing reductions in each of our gas utilities. Reductions should be reflected over the next year."
So everyone should see savings down the road. If you haven't picked a gas supplier, this is not the time.
DOMINION PEOPLES PLUS CUSTOMERS
If you are a customer of Dominion Peoples Plus, the gas supplier, you can get lower rates with one phone call. The number to call is
1-800-400-5648.
If you are a Columbia Gas Company customer, the new rate is 95 cents per ccf through December 2009.
If you have been a customer of Dominion Peoples Plus for a year or more, you no longer pay the gas cost adjustment charge, so you will still save money.
Columbia Gas says its new price to compare for natural gas is 88 cents per ccf. The gas cost adjustment charge is 2 cents per ccf for a total charge of 96 cents per ccf.
If you are an Equitable Gas customer, the new price from Dominion Peoples Plus is $11.99 through December 2009. The new price from Equitable Gas company is $11.21. Add the gas cost adjustment charge of $1.86 per mcf, and the total is $13.07.
If you have been a Dominion People's Plus customer for one year or more, you no longer pay that gas cost adjustment charge, so Dominion Peoples Plus is still a bargain for you. If you switch back to Equitable, you don't have to pay the gas cost adjustment charge for one year, but then it kicks back in.
If you are a Dominion Peoples Gas Company customer, your new price to compare is $8.11. That includes a 57 cent capacity charge. The gas cost adjustment charge is $2.55.
If you have been a customer of Dominion Peoples Plus for more than a year, you save that $2.55 gas cost adjustment, so you can get a new price of $10.49 instead of $10.66 at Dominion Peoples Gas company.
If you have not been a customer of Dominion Peoples Plus for more than a year, check your numbers. It might be time to switch back to your utility company. It's gas choice. The choice is yours.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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