Natural Gas News

Penn Natural Gas estimate bouncing 10 percent.

Penn Natural Gas estimate bouncing 10 percent.


Natural gas heating bills will jump almost 10 percent next month, UGI Penn Natural Gas officials said Wednesday.An increase in purchased gas cost rates follows the price the utility pays to buy the gas, which has been increasing since February.“Wholesale natural gas prices have been subject to upward price pressure over the past six months, and this adjustment reflects those higher costs,” said UGI Chief Regulatory Officer Paul Szykman in a statement.

Starting June 1:

• The average residential customer, using 9,100 cubic feet of gas per month, will pay $89 a month, up from $81.

• The typical commercial customer, using 30,000 cubic feet of gas, will pay $227 per month, up from $202.

• The average industrial customer, using about 100,000 cubic feet of gas will pay $667 a month, up from $585.

In December, the purchased price dropped 6 percent. Although 10 percent seems like a hefty leap, “with the abundant shale gas resources in Pennsylvania, UGI anticipates natural gas to remain an excellent value compared to other energy sources,” Szykman said.Penn Natural Gas serves 166,000 customers in 15 Northeast Pennsylvania counties. By law, it may not profit from selling the gas, only on its delivery.It is allowed to adjust rates quarterly to align with the market. Officials said they don’t anticipate a December rate increase.North America consumes most of the gas it produces, and that shields the price from global factors and keeps it lower than many other large consuming nations, said John Staub, an analyst with the U.S. Energy Information Administration, the data arm of the Department of Energy.The recent low price of gas, around $3 per 1,000 cubic feet spurred new industrial development, which, in turn, puts more demand on the commodity.The season also may have an unpleasant effect on the customer’s monthly bill.“The retail price of gas rises through August,” said Staub. “What you might be seeing is a seasonal effect at the retail level. It’s the same kind of pattern that happened in 2016. The highest price was in the July/August time frame.”EIA projections show retail prices for gas will again peak in August and decline heading into the colder months.Rates on the rise.

The three major utilities serving Northeast Pennsylvania plan rate increases.

• Starting June 1, PPL is increasing electricity rates 14 percent to adjust to changing electricity prices.

• Pennsylvania American Water asked the state Public Utility Commission to increase its rates 17 percent to cover $1.26 billion in infrastructure repairs. The PUC is reviewing the water company’s request.

• UGI Penn Natural Gas will raise its purchased gas cost rates June 1.We welcome user discussion on our site, under the following guidelines:To comment you must first create a profile and sign-in with a verified DISQUS account or social network ID. Sign up here.Comments in violation of the rules will be denied, and repeat violators will be banned. Please help police the community by flagging offensive comments for our moderators to review. By posting a comment, you agree to our full terms and conditions. 

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