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GUC Reduces Natural Gas Rates
October 1, 2008 

GUC has reduced natural gas rates for its customers, effective October 1. As a result, the average residential user of 25 ccf (100 cubic feet) will see a decrease of approximately $2.56 per month.  Depending upon the amount of gas used, residential customers will see a decrease of about 5% to 6%. 

“The market price of natural gas has decreased significantly, and GUC is passing those projected savings onto our customers,” said Ron Elks, GUC’s General Manager/CEO. “It's important to note that seasonal lows for natural gas usually occur around August and September. Cooler weather in winter will likely lead to higher prices for natural gas in the coming months.” 

This is the second natural gas decrease GUC has passed on to customers recently. On August 1, 2008, GUC reduced natural gas rates by approximately 14% to 15%. Average summertime residential users of 25 ccf saw a decrease of approximately $8.07 per month.

GUC purchases natural gas through marketers on the open market. In addition to paying for the cost of the gas itself, the utility also pays to have it transported from the Gulf of Mexico to the GUC system. A competitive market determines the price of natural gas, which is a commodity traded on the open market like wheat, oil, lumber and orange juice. The market price of natural gas is dictated by supply and demand. When demand is high, the price rises. When supply is high, the price drops.

Natural gas rates are set using a base rate that accounts for transportation and utility costs, then adjusted each month based on the fluctuating price of the gas itself.

“GUC does not profit from fluctuations in gas costs,” said Elks. “All costs associated with increases or decreases in the commodity price of natural gas are normally passed along to customers on a dollar-for-dollar basis. In other words, we simply track the increases or decreases to our customers.”