Natural gas prices through March fall
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An increased supply of natural gas -- thanks in part to development in the Marcellus Shale -- as well as warmer weather patterns have lead to lower gas prices for Western Pennsylvania customers in the first quarter of 2012.
All three utility providers in the region announced lower rates Friday for the quarter starting Jan. 1 and extending through March 31.
Equitable Gas customers will pay an average of $89.09 per month in the coming quarter, down $2.03 from the quarter ending today. That's a quarterly gas rate of $6.27 per Mcf, down 24 cents.
Columbia Gas customers will see an average monthly bill of $70.97 -- down $4.67 from the previous quarter. Columbia Gas customers will pay a rate cost of $5.24 per Mcf, a decrease of 28 cents.
Peoples Natural Gas decreased its average monthly bill amount by $3 to $79 per month in the coming quarter. The company's gas cost rate fell 36 cents to $5.16 per Mcf.
Equitable Gas spokesman Scott Waitlevertch attributed the decrease to the development of the Marcellus Shale and other natural gas plays across the country, as well as the warmer-than-usual weather that's kept demand low at the start of the winter.
In addition, gas supplies haven't seen disruptions such as major hurricanes this year, and a slowly recovering economy has meant lower demand from major utility customers like manufacturers.
"[Natural] gas prices dropping in the middle of winter -- it's something," said Mr. Waitlevertch.
The new rates were filed with the Pennsylvania Public Utility Commission.
State laws require companies to adjust rates because they're forbidden to make or lose money from fluctuating natural gas sales.
Budget customers whose rates are adjusted according to yearly charges are not subject to the quarterly adjustments.
First Published December 31, 2011 12:00 am
