A small measure of relief is coming for shell-shocked Philly area gas customers
After shocking bill increases in December, Peco and PGW gas customers will see slight decreases in March. Peco customers will save about $5.78 a month. PGW customers, a dime.
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Philadelphia natural-gas customers who have experienced dramatic bill increases since December because of rising energy costs will see a small measure of relief in their upcoming bills.
Peco, the Philadelphia utility that serves gas customers in the Southeastern Pennsylvania suburbs, said Tuesday that new gas rates took effect March 1, which will lower a typical gas bill by about 3.2% starting this month. The bill for a residential customer who uses an average of 160 hundred cubic feet (ccf) of natural gas will decrease from $182.63 to $176.85 a month, or $5.78 per month.
Philadelphia Gas Works said its gas rate will go down a fraction for the next three months, which would save residential customers using 160 ccf of gas about 10 cents a month.
The gas supply charge is revised every three months, and typically does not arouse much attention as it moves up or down to reflect changes in energy market prices.
But the companies’ last quarterly increase on Dec. 1 boosted bills dramatically, shocking many customers with massive bills, and triggering a torrent of complaints on social media and to the utilities. Utilities are not allowed to add any profit to the gas price, so it reflects only their cost to buy and store the gas.
U.S. natural gas prices ran up significantly in the fall and peaked in November, which was reflected in the big increases in the bills after Dec. 1. Market prices settled in recent months, though turmoil after last week’s Russian invasion of Ukraine may be reflected in future rate fluctuations.
The gas supply charges affect only customers who choose the utility’s “default rate.” Customers can also shop to buy their energy supply from competitive suppliers, some of which post their prices on the Pennsylvania Public Utility Commission’s website, pagasswitch.com.
Most of Peco’s 511,000 gas customers and most of PGW’s 500,000 gas customers get their energy at the “default rate,” which is what changed on Tuesday.
Peco on Tuesday set its new default rate — also called its “price to compare” — at 53.909 cents per hundred cubic feet (ccf) of natural gas. This is a decrease of 4.279 cents per ccf, or 7.4% from Dec. 1. The charge is for the gas supply charge of a customer’s bill, and does not impact distribution charges, which diminishes the impact on the monthly bill.
New Jersey gas utilities adjust their “basic gas supply service” rates annually on Dec. 1. South Jersey Gas energy rates soared 82% to 50.255 cents per therm, a unit that is roughly equal to a hundred cubic feet of natural gas. PSE&G’s energy charges increased by 28% to 41.021 cents per them.
The New Jersey rates are locked in for the next nine months until the state regulator, the Board of Public Utilities, reviews them again.