AP NEWS

Lower gas bills seen for WV customers

August 5, 2018

CHARLESTON — In the midst of proposed rate increases by electric and water utility companies in West Virginia, natural gas utilities that serve over 95 percent of the natural gas customers in the state have filed requests to lower rates.

According to a news release from the Public Service Commission of West Virginia, following an initial review of the “Purchased Gas Adjustment” cases filed recently, the agency is expecting slightly lower gas utility bills across the state for the upcoming heating season.

Mountaineer Gas Co. has asked for a decrease of 3.95 percent, Hope Gas/Dominion Energy has requested a decrease of 5.03 percent, Lumber-port-Shinnston Gas has requested a decrease of 5.9 percent, and Peoples Gas has requested a decrease of 4.8 percent.

“The Commission does not regulate the price of natural gas,” the release said. “That price is determined by competitive markets. The Commission does examine the gas purchasing practices of gas utilities and ensures the utility did everything possible to obtain a reliable gas supply at the lowest market price.”

By law, gas utilities are permitted to recover their costs to purchase natural gas.

“The gas rates of customers are adjusted annually to account for the cost of gas in a process called a Purchased Gas Adjustment (PGA) proceeding before the Commission,” the release said. “The PGA is an estimate of expected prices utilities will have to pay for gas from their suppliers for the period of Nov. 1 through Oct. 31 of the following year, as well as a ‘true up’ of actual costs for the previous year. The PGA does not include any profit for the utility.”

AP RADIO
Update hourly