Good news for the holidays: Columbia bills to be nearly $78 lower
COLUMBUS, Ohio – Columbia Gas of Ohio today filed its Gas Cost Recovery (GCR) adjustment for December with the Public Utilities Commission of Ohio (PUCO). The GCR of 49 cents per 100 cubic feet (Ccf) of natural gas will be 70 cents, or 59 percent, lower than December 2008, when it was $1.19.
The typical residential customer using 114 Ccf of natural gas would see a December bill of $92.43, according to company estimates. That bill is down $77.80 compared to December 2008, when it was $170.23.
“Natural gas market prices are well below 2008 levels, and we are delighted to be able to pass those savings along to our customers,” said Columbia Gas of Ohio President Jack Partridge. “As we enter the holiday season and the economy continues to struggle, a significantly lower gas bill is welcome news.”
Next month’s GCR is the second-lowest heating-season gas cost charge in the last eight years. It was 48 cents in the November 2001 through January 2002 quarter.
December is the fourth-highest gas usage month of the year for Columbia’s residential heating customers, and is typically one of the months when bills are highest.
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 60 percent of the typical residential customer’s bill.
Compared to November 2009, the December GCR will be down by 7 cents to reflect lower natural gas costs. Higher natural gas usage due to colder temperatures will increase the typical residential customer’s December bill to $92.43, compared to $61.10 in November. Average residential gas usage is 62 Ccf in November.
The December GCR will be in effect from Nov. 25 through Dec. 29. The PUCO requires Columbia to adjust its GCR charge monthly to reflect market conditions.
The change in the December GCR does not affect customers who purchase their gas from a third-party marketer through the Customer CHOICEsm 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.