Utilies Continue to Cut Natural Gas Prices as the Shale Revolution Saves Consumers Billions
More evidence of the significant benefits from the Shale Revolution.... 1. "Philadelphia Gas Works announced today the latest decrease in natural gas rates, which have been falling because of low commodity prices. The new rate for residential customers is $1.35 per hundred cubic feet, down 2.5% from $1.40. Rates also decreased for commercial, industrial and municipal customers. In the last year, PGW’s residential natural gas rate has fallen 13%. On an annualized basis, a typical PGW residential customer now pays $181 less than 12 months ago."2. "Elizabethtown (N.J.) Gas residential customers could spend less to heat their homes this upcoming winter. The company has filed a petition with the New Jersey Board of Public Utilities to lower rates for supplying natural gas to residential customers by an average of 2.3%."3. "South Jersey Gas proposed a rate reduction today that would save residential customers an average of 1.1% on their natural gas bills. SJG has filed petitions with the New Jersey Board of Public Utilities that will lead to an overall decrease of $1.44 on a 100-therm monthly natural gas bill. This filing follows a series of other reductions to customers' bill costs over the past two years, including a 10.6% rate reduction granted in 2010, a 3.4% reduction granted in September 2011, and two Basic Gas Supply Service bill credits for $23 million and $20 million issued in April 2011 and December 2011, respectively." 4. "In a filing made today with the New Jersey Board of Public Utilities, PSE&G has proposed to lower winter natural gas bills this fall by an additional 5.2% a month for residential customers. If the request is approved, it will result in the ninth decrease in a row in natural gas supply charges, for a total savings of 39% -- or about $674 -- since January 2009, when wholesale prices started to drop." MP: Lower natural gas prices have already delivered a powerful $250 billion economic stimulus to the U.S. economy over the last three years from cost savings for natural gas customers (residential, commercial, industrial and electric utilities), according to a recent study by the American Gas Association (see CD post). And these new announcements today of further rate cuts by utilities in Pennsylvania and New Jersey indicate that the significant cost savings from the energy stimulus known as the "Shale Revolution" will continue. Importantly, this ongoing economic stimulus from shale gas, unlike the politically-favored alternative energies, doesn't require any tax subsidies, tax credits, public expenditures, procurement preferences or grants.