Natural Gas Consumers Will See Lower Than Expected Bills

Customers of Mountaineer Gas Co. and Hope Gas will see lower- than-expected bills this winter due to a ruling by the West Virginia Public Service Commission.
The PSC has granted much lower interim purchased gas cost (PGC) rates than the companies had requested.
Mountaineer Gas had originally requested a PCG of $9.85 per Mcf for residential customers.
Under the requested rate, the average residential customer using 13 Mcf per month would have received a $197.93 winter monthly bill, an overall increase of 38 percent, as opposed to the current $143.59 monthly bill that customer is now getting. The commission granted a PGC of $6.547 per Mcf which will result in an average monthly residential bill of $165.59, an overall increase of 15 percent.
Hope Gas had originally requested a PCG of $9.87 per Mcf for residential customers.
Under the requested rate, the average residential customer using 13 Mcf per month would have received a $219.50 winter monthly bill, an overall increase of 62 percent, as opposed to the current $135.51 monthly bill that customer is now getting.
The commission granted a PGC of $5.856 per Mcf which will result in an average monthly residential bill of $173.89, an overall increase of 28 percent.
The rates ordered Monday are interim rates. The commission will continue to review the price of natural gas and the impact of the interim rates and make further adjustments, if necessary, before setting final rates.
The rates will be subject to a true-up in future 30C cases. Natural gas utilities are required to file PGC cases annually to reflect changes in the purchased gas component of their rates.
The prices that natural gas utilities pay their suppliers for gas are not regulated by the commission or the federal government, but are determined by the market.
The commission examines the gas purchasing practices of gas utilities, reviews the reasonableness of requested increases and ensures​ the utility did everything possible to obtain a reliable gas supply at the lowest possible market price.
The PGC does not include any profit for the company.
Mountaineer and Hope/Dominion are the two largest natural gas utility companies in West Virginia, collectively serving almost 89 percent of all natural gas utility customers in the state.