Philadelphia Gas Works on Friday announced the latest decrease in natural gas rates, which have been falling because of low commodity prices. The new rate for residential customers is $1.35623 per hundred cubic feet, down about 2.5 percent 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 percent. On an annualized basis, a typical PGW residential customer now pays $181 less than 12 months ago.
PGW is required to adjust its gas-cost rate quarterly to reflect market conditions, and must pass commodity costs through to customers without markup. Natural gas costs have decreased because of surplus production of shale gas from formations like Pennsylvania’s Marcellus Shale.