RICHMOND, Va. (WWBT) - Richmond Gas Works says customers will be seeing lower natural gas bills beginning with utility bills in May.
The cost for purchased natural gas (PGC) will decrease from its current $0.425 per 100 cubic feet (1 Ccf) to $0.385 per 100 cubic feet (1 Ccf), an estimated savings of $3.00 monthly to the average natural gas customer.
Other components of the natural gas bill the distribution charge at $0.590 (per Ccf) and monthly customer charge at $13.87 – have not changed.
The utility bill of the average residential customer who uses 70 Ccf’s of natural gas per month will be approximately $82.12 compared to a current bill of $84.92.
This equates to a ten percent reduction in the PGC rate charged by Richmond Gas Works and nearly a three and a half percent reduction in the entire natural gas bill.
DPU Director Calvin D. Farr, Jr. attributes the decrease to impending warmer weather in our area and the downward pressure on natural gas prices.
The city’s gas utility passes along the cost of natural gas purchased and delivered to customers, dollar for dollar, without any markup. “We’re pleased to be able to make this adjustment,” Director Farr said.
The savings on the monthly natural gas bills will be in addition to Mayor Stoney’s decision to not increase rates for the water, wastewater and stormwater utilities. Those utility rates will now remain unchanged as presented in the Mayor’s revised FY21 budget.
Utility analysts review the PGC on a monthly basis and make recommendations for adjustments as needed based on market and weather conditions and other related factors.
The Richmond Gas Works’ PGC rate is less than or equal to surrounding natural gas franchises. Across all energy sectors (electricity, heating oil, propane), natural gas remains the most efficient and economical choice of fuel for home heating, water heating, cooking and clothes drying.
The City offers free information and programs year-round to help customers manage their utility bills and seek assistance before bills become unmanageable.
Utility customers are encouraged to enroll in the Equal Monthly Payment Plan (EMPP), a program designed to spread payments out evenly each month.
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