Sunday, October 14, 2012
Natural Gas Rates Lowered Across West Virginia
Hope Gas customers will see their purchased gas rates decrease 12.35% from $6.25 to $5.48
per Mcf, and the Equitable Gas rate is being reduced 33.88% from $4.90 to $3.24 per Mcf.
Consumers Gas, Bluefield Gas, Blacksville Oil & Gas, Canaan Valley Gas, Lumberport-Shinnston
Gas, Southern Gas, Standard Gas, A.V. Company, Tawney Gas Services and Union Oil & Gas will
all be decreasing their purchased gas rates.
Mountaineer Gas will see the purchased gas portion of its rates go from $6.11 to $4.98 per
Mcf, a decrease of 18.5%. Mountaineer has a base rate case pending before the Commission so the
total rates have not yet been determined.
Purchased gas adjustment (PGA) proceedings provide for annual rate adjustments based on
an estimate of future costs utilities will pay for gas from their suppliers for the period of November
1 through October 30 of the following year and a true-up of actual costs for the previous year.
Customers’ gas rates are adjusted annually to account for differences in the cost of gas in PGA
cases. The PGA accounts for approximately two thirds (2/3) of the residential gas customer’s bill.
The Commission does not regulate the supplier price which is determined by competitive markets,
but does examine the gas purchasing practices of gas utilities and reviews the reasonableness of
those practices. The PGA is solely a pass-through of gas costs and does not include a profit for the
More information is available on the PSC website: www.psc.state.wv.us.