Under the Commission’s Rule 30C procedures, natural gas utilities are entitled to file annually to adjust the purchased gas component of their rates. This purchased gas adjustment procedure (PGA) allows the gas utility to recover the costs it pays suppliers for the gas it delivers to gas customers, but does not include any profit for the company. PGA proceedings provide for annual rate adjustments based on an estimate of future costs utilities will pay for gas from their suppliers for the period of November 1 through October 30 of the following year and a true-up of actual costs for the previous year. The PGA cost of purchased gas varies depending on the natural gas utility and, on average, is currently between 35-48% of a typical residential natural gas utility bill.
The prices that natural gas utilities pay their suppliers for gas are not regulated by either the Commission or any Federal government agency, but are determined by the national market. Over recent years, the market-driven price can be and has been extremely volatile, largely resulting from the supply advantage resulting from the availability of Marcellus gas in the market and other external factors.
|Company||Number of Customers||2016 Rate/Mcf|
|Blacksville Oil & Gas||283||$3.569|
|Canaan Valley Gas||562||$2.64|
|Consumers Gas Utility||8,358||$2.494|
|Peoples Gas WV||12,834||$3.06|
|Southern Public Service||6,344||$2.94|
|Union Oil & Gas||6,130||$4.036|