GRU natural gas bills to go down

 
 
Falling natural gas prices mean Gainesville Regional Utilities' natural gas customers could see their bills drop about $16.50 a month starting in October.

Lower prices for the fuel, which GRU uses in its generators, will also help offset a series of electrical rate increases for those who rely on the municipal utility for power.

Natural gas prices spiked as a result of last year's hurricane season, which interrupted production and depleted supplies, GRU Managing Utility Analyst Heidi Lannon said. Since then, natural gas production has resumed, mild weather has allowed supplies to be restocked and the utility has entered into a long term contract for the fuel, which have helped control prices, Lannon said.

"We have a lot of customers with gas heaters, which are very efficient, so it's good to have the purchased gas adjustment lowered for the winter," GRU Managing Utility Analyst Heidi Lannon said

GRU passes on the price of natural gas to its customers in two ways.

For those who receive the fuel directly to their home - for use in appliances such as heaters and ovens - the cost of the fuel is directly passed on as a "purchased gas adjustment."

Electrical customers pay for the cost of natural gas and other fuels used by GRU as part of a "fuel adjustment" passed on by the utility in monthly bills.

A typical GRU natural gas customer will pay about $49.50 next month, compared to about $66 before the decrease.

The lower fuel charge means a GRU electrical customer who uses about 1,000 kilowatt-hours a month will pay about $45 in a "fuel adjustment" next month, $5 less than the utility has been charging since January.

But the lower electrical fuel costs will come the same month as GRU raises electrical rates by about $6.50. Gainesville City Commissioners this week gave final approval to rate increases to the utility's electrical and water rates that will total about $15 a month more for the typical customer.

Lannon said with the market for natural gas stabilizing, GRU should be able to maintain the lower fuel charge and natural gas charge for the next year.

Though natural gas use tends to increase during the winter as people across the country turn on gas-powered heaters, Lannon said she did not think this would impact GRU's fuel costs. However, she warned that the cost of fuel was highly dependent on weather and other factors.

"All you need is a hurricane or a cold season," she said.
 

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