Sharply lower wholesale natural gas prices will mean smaller heating bills for Kentucky customers this winter according to the Kentucky Public Service Commission (PSC).
“Natural gas prices have come down considerably from the artificially high levels of last year,” PSC Chairman David Armstrong said. “Furthermore, there is reason to think that we may see relatively stable prices for the next several years.”
On average, Kentucky customers can expect to pay about 39 percent less this November than last year for 10,000 cubic feet of natural gas. Individual reductions will vary by company and customer usage.
Wholesale prices are at their lowest levels in at least six years and are less than half the peak prices seen in 2008. Wholesale costs make up the largest portion of retail gas bills during the heating season and are passed through to consumers on a dollar-for-dollar basis by local distribution companies.
The wholesale cost of natural gas accounts for about three-fourths of a typical consumer’s winter bill. A typical Kentucky customer using 10 mcf next month will pay a total monthly bill of $92.08, down $58.70 – or 38.9 percent – from the $150.78 average bill a year ago.
Major Natural Gas Distribution Companies in Kentucky
• Atmos Energy
• Columbia Gas
• Delta Natural Gas Co.
• Louisville Gas
and Electric Co.
• Duke Energy
Combined, the five companies serve more than 750,000 customers in Kentucky and deliver about 176 billion cubic feet of gas annually.