Columbia November Gas Costs to be 53% Lower than 2008
COLUMBUS, Ohio – Columbia Gas of Ohio today filed its Gas Cost Recovery (GCR) adjustment for November with the Public Utilities Commission of Ohio. The GCR of 56 cents per 100 cubic feet (Ccf) of natural gas will be 63 cents, or 53 percent, lower than November 2008, when it was $1.19.
The typical residential customer using 62 Ccf of natural gas would see a November bill of $61.10, according to company estimates. That bill is down $36.05 compared to November 2008, when it was $97.15.
The November 2009 GCR of 56 cents is Columbia’s lowest heating-season fuel charge since the November 2002 through January 2003 quarter, when it was 65 cents. The last time a heating-season GCR was lower than next month’s charge was November 2001 through January 2002, when it was 48 cents.
“The fact that our November gas costs will be well below last year’s is especially good news for our customers now that we’re headed into another winter heating season,” said Columbia Gas of Ohio President Jack Partridge. “Winter is when customer usage is the highest and when lower fuel charges mean the biggest bill savings.”
It’s important to remember that, by law, Ohio utilities may not profit on the sale of gas to their retail customers. Columbia merely passes its gas costs through to customers on a dollar-for-dollar basis.
Natural gas costs make up about 56 percent of the typical residential customer’s bill.
Compared to October 2009, the November GCR will be up by 7 cents to reflect higher natural gas costs. Higher natural gas usage due to colder temperatures, combined with the higher GCR, will increase the typical residential customer’s November bill to $61.10, compared to $31.67 in October. Average residential gas usage is 26 Ccf in October.
The November GCR will be in effect from Oct. 27 through Nov. 24. The PUCO requires Columbia to adjust its GCR charge monthly to reflect market conditions.
The change in the November GCR does not affect customers who purchase their gas from a third-party marketer through the Customer CHOICE™ Program, unless the marketer’s rate is tied to Columbia’s GCR. About 53% of Columbia Gas customers purchase their gas directly from the utility.
Columbia Gas of Ohio, with headquarters in Columbus, is one of the nine energy distribution companies of NiSource Inc. (NYSE: NI). Serving approximately 1.4 million customers in 60 of Ohio’s 88 counties, it is the largest natural gas utility in the state. NiSource distribution companies serve approximately 3.8 million gas and electric customers primarily in seven states.