City Announces Reduction in Purchased Gas Cost

The city of Richmond Department of Public Utilities (DPU) announced today a 20 percent reduction in the purchased gas cost (PGC) rate charged by (DPU).  This decrease comes as a result of improved price projections and increases in natural gas usage over the summer.

Mayor Dwight Jones stated that, “By law, the city passes along the cost of the natural gas it purchases and delivers to its customers, dollar for dollar without any markup.  As we enter the heating season, I’m pleased that we are in a position to announce this 20 percent reduction in the cost. The city will continue to review and adjust the gas costs on a quarterly basis to reflect the price that DPU pays for natural gas.”

Beginning with the first natural gas bill received in November 2014, the PGC will decrease from $0.815 to $0.650 per Ccf (100 cubic feet of natural gas).  As a result, the average residential customer who uses 70 Ccf per month will pay approximately $91.99 compared to a current bill of $103.54, an 11 percent reduction in the total natural gas bill.

Across all energy sectors (electricity, heating oil, propane), natural gas prevails as the most efficient and economical choice of fuel for home heating, water heating, cooking and clothes drying. DPU offers information and programs year-round to encourage customers to better manage their utility bills and seek assistance before bills become unmanageable.  DPU also encourages customers to consider enrolling in the Equal Monthly Payment Plan in order to avoid large seasonal fluctuations in their monthly bill.  More information about EMPP and other programs is available by calling 644-3000 or visiting DPU’s website at http://www.richmondgov.com/dpu.