Printer Friendly

NATURAL GAS COSTS MAY INCREASE OVER NEXT 3 MONTHS

 CLEVELAND, Jan. 11 /PRNewswire/ -- East Ohio Gas natural gas costs could increase slightly over the next three months, beginning in February. Customers could see an increase of 4.2 percent in their total bills, due to the company's quarterly gas cost recovery (GCR) filing made today with the Public Utilities Commission of Ohio (PUCO).
 The GCR is expected to increase 20.1 cents per thousand cubic feet (MCF) over the current rate of $2.979/MCF. If approved by the PUCO, the new GCR rate of $3.180/MCF would be in effect from Feb. 10 through May 10, 1993. Typical residential customers using 60 MCF during the three-month period can expect to see an increase of approximately $4 per month.
 Even with this anticipated increase, East Ohio Gas' GCR rate will continue to be the lowest of the major natural gas utilities in the state of Ohio, and the company's GCR rate will remain lower than it was 10 years ago.
 GCR adjustments are filed quarterly, reflecting the actual costs of gas supplies purchased. The company does not make a profit on the GCR component, passing along these costs directly to consumers. The GCR accounts for two-thirds of a customer's bill.
 Patrick A. Carney, vice president of public affairs, attributed the higher prices to a combination of factors, including a restructuring of the interstate pipeline network (Federal Energy Regulatory Commission Order 636), increased demand due to winter weather and price volatility on the national natural gas spot market.
 "This is only the second gas cost increase East Ohio Gas has sought in the last three-and-a-half years," Carney said. "While there is never a good time to increase costs to our customers, we must respond to the changing structure of national gas markets and uncertainty of how changing federal regulations will impact our market."
 However, Carney assured customers that there is an adequate and reliable supply of natural gas for the 1993 winter heating season. "This is the time of year our customers depend on us most and they can be assured that we will be able to meet their natural gas demands, regardless of changing weather patterns."
 To meet the demands of its customers, the company combines several methods to ensure reliable natural gas supplies.
 One of the most valuable assets the company utilizes is its on- system storage capacity. Through its vast storage facilities, the company has been able to buy natural gas cheaper during the summer and hold in storage until winter. Storage capability allows the company to maintain reliable natural gas supplies for its customers at the least cost possible. East Ohio Gas' parent firm, Consolidated Natural Gas (CNG) (NYSE: CNG), also has stored gas, which is accessible to the company.
 In addition to the company's diverse national supplier and pipeline network, East Ohio Gas is also one of the largest purchasers of Ohio natural gas. The company purchases approximately 20 percent of its total gas supply from Ohio producers, giving it a steady, continuous and local source.
 Cleveland-based East Ohio Gas is the largest subsidiary of CNG, which is headquartered in Pittsburgh, Pa. The 2,500 employees of East Ohio Gas serve more than 1,000,000 residential, commercial and industrial customers in 270 northeast Ohio communities.
 -0- 1/11/93
 /CONTACT: Tracy Oliver of East Ohio Gas, 216-736-6224, or toll-free in Ohio, 800-556-4400/
 (CNG)


CO: East Ohio Gas ST: Ohio IN: UTI SU:

BM -- CL016 -- 3601 01/11/93 14:17 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 11, 1993
Words:578
Previous Article:BAREFOOT ANNOUNCES COMPLETION OF EVER-GREEN LAWN ACQUISITION
Next Article:ROCHESTER TEL REDEEMS DEBENTURES
Topics:


Related Articles
COLUMBIA GAS NOTIFIES COMMISSION OF HIGHER GAS PRICES; ASKS FOR INCREASE IN GAS COST RECOVERY RATE
COLUMBIA GAS RECEIVES PERMISSION TO ADJUST GAS COST RATE
PSC APPROVES NYSEG RATE INCREASES
DELMARVA POWER SEEKS NATURAL GAS PRICE DECREASE
ATLANTA GAS LIGHT COMPANY'S GAS SUPPLY PLAN MEANS MORE SAVINGS FOR CONSUMERS IN 1996
MPC RATE FILING INCLUDES ALTERNATIVE THREE-YEAR PLAN
PECO ENERGY REPORTS COLD WINTER WEATHER HAS INCREASED COSTS AND RATES FOR NATURAL GAS
Peoples Energy Moves to Stabilize Natural Gas Prices.
December Natural Gas Bills Almost 5 Percent Higher Than a Year Ago.
February Natural Gas Bills 6.7 Percent Lower Than One Year Ago.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters