Lower wholesale gas prices could mean lower bills; less strain on customers
(LOUISVILLE, Ky.) — As many consider dialing up the thermostat as cooler temperatures begin settling in, Louisville Gas and Electric Company is announcing a reason for the utility’s natural gas customers to celebrate.
“We know it’s been a rough couple of winters for customers, even as we worked to lend extra support to community agencies to help assist our most vulnerable customers,” said LG&E’s Eileen Saunders, vice president of Customer Services. “This year, wholesale natural gas prices, which is what we pay for the gas we purchase and use to serve customers, have trended lower, so customers should see some much-needed relief on their bills, and we’re thrilled to pass on the good news.”
The winter heating season is defined as November through March. Experts attribute current, lower wholesale natural gas costs to higher natural gas storage inventories across the nation and steady natural gas production levels.
A line item on the natural gas portion of LG&E customer bills is adjusted quarterly, and passes on the cost the utility pays for the natural gas it delivers to customers $1 for $1, with no markup. If approved by the Kentucky Public Service Commission, the next adjustment to the line item will go into effect on Nov. 1. Based on current prices, LG&E says a natural gas customer, using about 60 ccf (or 6,000 cubic feet) per month will see a bill savings of around 34% compared to the same time last year, putting the typical natural gas portion of customer bills at about $73.55.
Weathering the season
LG&E works year-round to secure competitively priced natural gas for customers. As part of its efforts the utility leverages its underground natural gas storage fields by purchasing gas at lower prices during the summer, storing it, then withdrawing the gas and delivering it during the winter season, which reduces the amount of gas that must be purchased during the colder months when gas is at a premium.
In addition to operational efforts that help to hold costs down, LG&E provides support to community agencies that assist customers in need.
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Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve more than 1.3 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 334,000 natural gas and 433,000 electric customers in Louisville and 16 surrounding counties. KU serves 569,000 customers in 77 Kentucky counties and five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.
