Richmond Announces Decrease in Purchased Gas Cost

Beginning with the first utility bills in April 2015, natural gas customers of the city of Richmond Department of Public Utilities (DPU) will see a savings on their monthly utility bill.  DPU is lowering the Purchased Gas Cost (PGC) portion of the natural gas utility bill from $0.575 to $0.425 per Ccf (100 cubic feet). 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.   Other components of the natural gas bill – the distribution charge and customer charge – are unchanged.

The PGC rate of the average residential customer who uses 70 Ccf’s of natural gas per month will pay approximately $78.64 compared to a current bill of $86.74.  This equates to a 26 percent reduction in the PGC rate charged by (DPU), and an overall 12 percent reduction in the entire natural gas bill.  Richmond Mayor Dwight Jones stated, “We welcome the opportunity to pass along these savings to our customers. 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.” 

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 646-7000 or visiting DPU’s website at http://www.richmondgov.com/dpu.