While natural gas may be less expensive this heating season, bills may be a bit higher for people than last winter.
UGI Penn Natural Gas Inc. announced its gas rate would decrease slightly starting Dec. 1, a drop expected to save the customer using an average amount of gas about 9 percent compared to last year. But that's based on average usage. Last year's temperate winter was anything but.
So despite broad declines in natural gas prices this year, the Energy Information Administration cautions that people may have higher natural gas bills. Consider that last winter was 60 percent warmer than normal. This winter is expected to be more normal - colder.
"People will be paying less for the gas they use," said UGI spokesman Joe Swope. "But if we get close to a normal winter, people will be using more gas than last year and bills will be higher."
On Dec. 1, UGI's purchased gas cost rate will fall from the current $5.22 per thousand cubic feet, or mcf, to $5.11 per mcf, a drop of 2.1 percent. Based on average usage of 8.9 mcf per month, the bill would fall about $1 to $93.42 per month.
The savings based on average use compared to last winter are greater, with hypothetical savings of $5.41 per month with average usage.
The rate decline is connected with the falling wholesale natural gas prices. The availability of natural gas from Marcellus Shale, a rock formation that underlies much of Pennsylvania, has driven prices down. In recent years, UGI has sought to acquire locally-extracted gas to help meet the needs of its customers. That saves the company and customers on transportation costs.
The new rate will remain for three months, until the next scheduled rate change March 1.
In spite of the economic rebound and increased energy use, energy prices continue to fall. Recently, Pennsylvania electricity suppliers announced falling prices.
Declining energy costs will help sustain the economic recovery, said Vicki O. Ebner, of UGI.
"We are especially pleased to see this reduction in purchased gas costs at a time when our economy is beginning to expand and demand for energy is increasing," she said.
Contact the writer: dfalchek@timesshamrock.com