GUC Decreases Natural Gas Rates
April 1, 2010
Greenville Utilities has reduced natural gas rates for its customers, effective April 1.
As a result, depending upon the amount of gas used, residential customers will see a decrease of approximately 10%. A typical residential natural gas customer using 50 ccf would see a decrease of approximately $7.36 per month.
Natural gas prices have continued to decline due to increasing supply and decreasing demand. As a result, the market price of natural gas has decreased significantly, and GUC is passing those projected savings on to our customers.
Including this most recent decrease, since August 2008, GUC has reduced customers gas rates seven times, for a total reduction of about 45.6% or $42.64/month based on average residential usage.
As Background:
GUC purchases natural gas on the open market. In addition to paying for the cost of the gas itself, we also pay to have it transported from the Gulf of Mexico to our system. A competitive market determines the price of natural gas, which is a commodity traded on the open market like wheat, oil and lumber. 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.
Market prices go up/down depending upon supply and demand and other factors, and our natural gas rates are adjusted based on the fluctuating price of the gas. GUC does not profit from fluctuations in gas costs. 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, periodically we “track” the increases or decreases to our customers.
GUC takes a systematic, disciplined and structured approach to our energy purchases. Our purchasing policy allows for longer-term planning, with purchases being made several months into the future when prices are favorable. This purchasing strategy allows Greenville Utilities the best opportunity to offer our customers price stability and protection from the ups and downs of the market. The goal of our purchasing strategy is to keep rates as stable and competitive as we possibly can, and we have been successful in doing so.
Natural Gas Rate Adjustments:
Decrease - August 1, 2008
The residential user of 50 ccf (hundred cubic feet) saw a decrease of approximately $16.15 per month. Depending upon the amount of gas used, residential customers had a decrease of approximately 14% to 15%.
Decrease - October 1, 2008
The residential user of 50 ccf (hundred cubic feet) saw a decrease of approximately $5.12 per month. Depending upon the amount of gas used, residential customers had a decrease of about 5% to 6%.
Decrease – January 1, 2009
The average wintertime residential user of 75 ccf (hundred cubic feet) saw a decrease of approximately $6.70 per month. Depending upon the amount of gas used, residential customers had a decrease of approximately 5.50%.
Decrease – March 1, 2009
The average wintertime residential user of 75 ccf (hundred cubic feet) saw a decrease of approximately $10.50 per month. Depending upon the amount of gas used, residential customers had a decrease of approximately 9%.
Decrease – May 1, 2009
The residential user of 50 ccf (hundred cubic feet) would see a decrease of approximately $3.54 per month. Depending upon the amount of gas used, residential customers will see a decrease of approximately 5%.
Decrease – August 1, 2009
The residential user of 50 ccf (hundred cubic feet) would see a decrease of approximately $1.78 per month. Depending upon the amount of gas used, residential customers will see a decrease of approximately 3%.
Increase – February 1, 2010
The average wintertime residential user of 75 ccf (hundred cubic feet) saw an average increase of 4%, or $4.14/month on their GUC bill.
Decrease – April 1, 2010
The residential user of 50 ccf would see a decrease of approximately $7.36 per month. Depending upon the amount of gas used, residential customers will see a decrease of approximately 10%.