PSC predicts lower natural gas prices

State News

Discussion

October 30, 2009

Anonymous The Glasgow Daily Times Fri Oct 30, 2009, 01:55 PM CDT

FRANKFORT — The Public Service Commission has some welcome news for natural gas consumers this year – prices are likely to be “sharply lower” this winter.

“Natural gas prices have come down considerably from the artificially high levels of last year,” PSC Chairman David Armstrong said. “Furthermore, there is reason to think that we may see relatively stable prices for the next several years.”

The PSC said wholesale prices are lower than they’ve been in at least six years, less than half the peak price of last winter. Since wholesale costs make up the biggest part of retail bills during the heating season, they are passed on to customers on a dollar-for-dollar basis by distributors.

Individual price levels will vary according to distributor and customer use, but the PSC is predicting on average consumers can expect to pay around 39 percent less than they paid last winter for 10,000 cubic feet of natural gas.

Electricity consumers, Armstrong said, aren’t likely to see much change in prices this year which should be stable.

Gas prices spiked in each of the past two years because of speculators in commodity markets but those markets are more stable than in recent years, Armstrong said. About 50 percent of natural gas used in winter months is put into storage in warmer summer months and the price at which distributors purchased the gas is the price passed on to consumers.

Kentucky’s five major natural gas distribution companies expect their adjusted wholesale cost this November to be, on average, $5.61 per 1,000 cubic feet. That is down $6.09 (52 percent) from an average of $11.70 per metric cubic foot a year ago.

The PSC recommends several ways consumers can hold down what they pay for energy. Those are to use budget billing to average annual costs out over a set monthly price, energy conservation and weatherization and conducting an energy audit of homes.

Advice on conserving energy is available on the Web at www.energy.ky.gov/dre3/.

Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.

Text Only

State News

ELLIS UPDATE: Lawmakers closer on new district mapping
Democratic House Speaker Greg Stumbo said Thursday that lawmakers in the Republican Senate and Democratic House are close to an agreement on re-drawing the congressional district map.

February 3, 2012
UK, UL leaders: Cuts are hurting higher ed
The presidents of the University of Kentucky and the University of Louisville told a legislative panel that they will keep working to achieve the goals of higher education reform passed in 1997 in spite of on-going budget cuts. But they made it clear it won’t be easy.

February 3, 2012
Lawmakers closer on new district mapping
Democratic House Speaker Greg Stumbo said Thursday that lawmakers in the Republican Senate and Democratic House are close to an agreement on re-drawing the congressional district map.

February 3, 2012
Stumbo files anti-pill mill bill
Under provisions of a bill filed Thursday in the General Assembly, pain clinics would have to be owned by licensed health care practitioners and any health care professional who prescribes controlled substances would have to register with and utilize the state’s electronic tracking system.

February 3, 2012
Jill York files to run against Rocky Adkins
The new legislative district maps prompted some tough decisions by some key lawmakers – even before the new map and Tuesday’s filing deadline were cast into doubt by a Franklin Circuit Court restraining order.

February 1, 2012
Filing deadline extended for congressional races
While attorneys argued before a judge about the constitutionality of the state legislative redistricting plan, the General Assembly has extended the filing deadline for congressional races — because lawmakers can’t agree on a map for congressional districts.

January 31, 2012
GOP files suit over new state districts
Three Republican lawmakers and two private citizens filed suit Thursday in Franklin Circuit Court to have the House legislative redistricting plan declared unconstitutional.

January 27, 2012
Committee reviews pill mill bill
Just one day after state and federal law enforcement officials raided a Paintsville pain clinic for the second time in a year, a Senate committee Thursday began reviewing a bill to regulate such clinics.

January 27, 2012
Special election is Feb. 7 for Comer’s seat
The Feb. 7 special election to fill the unexpired term of former Rep. James Comer, who was elected Commissioner of Agriculture in November, will be conducted according to the previous district lines as they existed before the General Assembly re-drew the boundaries.

January 26, 2012
Beshear tries to get gambling in line
Republican Sen. Damon Thayer of Georgetown said Wednesday he is “strongly leaning toward sponsoring” Democratic Gov. Steve Beshear’s proposal for a constitutional amendment on expanded gambling.

January 26, 2012
More State News Headlines

State News

Search Results

Discussion

PSC predicts lower natural gas prices

Site Map