City Lowers Purchased Gas Cost

Beginning with May 2018 utility bills, Richmond Gas Works customers will see a savings on their monthly natural gas bill.  The cost for purchased natural gas (PGC) will decrease from its current $0.525 per 100 cubic feet (1 Ccf) to $0.400, an estimated savings of $8.75 monthly to the average natural gas customer.  At the date of this release other components of the natural gas bill – the distribution charge at $.552 and customer charge at $12.98 – are unchanged.     

The PGC rate of the average residential customer who uses 70 Ccf’s of natural gas per month will pay approximately $79.62 compared to a current bill of $88.37.  This equates to a 23.8 percent reduction in the PGC rate charged by Richmond Gas works and an overall ten (10) percent reduction in the entire natural gas bill.  Richmond Mayor Levar Stoney attributes the decrease to impending warmer weather in our area and the downward pressure on natural gas prices.     

DPU Interim Director Rosemary Green says, “This is good news for our customers! We are always heartened when market conditions allow us to lower rates and pass on the savings. By law, we pass along the cost of natural gas purchased and delivered to customers, dollar for dollar, without any markup.”  Utility analysts review the PGC on a monthly basis and make recommendations for adjustments as needed based on market and weather conditions and other related factors. At the time of this release, the Richmond Gas Works’ PGC rate is less than or equal to surrounding natural gas franchises.

Across all energy sectors (electricity, heating oil, propane), natural gas remains the most efficient and economical choice of fuel for home heating, water heating, cooking and clothes drying.     

The City offers free information and programs year-round to help customers manage their utility bills and seek assistance before bills become unmanageable.  Utility customers are encouraged to enroll in the Equal Monthly Payment Plan (EMPP), a program designed to spread payments out evenly each month or to apply for the MetroCare Heat Program, a heating bill payment assistance program for those who qualify.   

More information about EMPP and other programs is available by emailing, calling (804) 646-4646 or visiting