PGW raises rate it charges for the cost of gas

Posted: September 05, 2012

Philadelphia Gas Works on Tuesday announced its gas-cost rate has increased 3.6 percent for the next three months, reflecting upward movement in the commodity price of natural gas.

Starting Sept. 1, the city-owned gas utility will increase the rate it charges for gas from $1.36 per hundred cubic feet (Ccf) to $1.41 per Ccf. For a customer using 880 Ccf per year, the increase amounts to an additional $3.67 a month. The charge reflects PGW's actual cost to buy the commodity – it is not allowed to mark up the price of gas.

The price boost is the first increase in 20 months, a time when natural gas costs have steadily decreased because of a glut in supplies. Even with the increase, PGW says that residential customers are paying 12 cents per Ccf less than the same time last year.

- Andrew Maykuth

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