Good news with a more stable gas market (June 2006)
- On June 1, PECO reduced by 8.9 percent the portion of its natural gas rate associated with gas the company purchases to serve its customers.
- The rate change reflects the company's lower actual gas supply costs in recent months and projected costs for buying wholesale gas in the coming months.
- The effect on your total bill will vary depending on your actual gas usage.
Market conditions are much improved over last year. In 2005, as you may recall, wholesale gas prices spiked when more gas was being used for power generation during an exceptionally warm summer, and after a destructive hurricane season in the Gulf of Mexico (where nearly all of the natural gas used in our region is produced). Now, lower prices allow PECO to lock in better rates for future supplies. Overall, the outlook for gas prices in the near term is more stable. Supplies remain tight with increased demand, and prices could change if abnormal conditions occur again.
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