Printable VersionA savings is coming to Lake Havasu City just in time for the winter months.
The costs per therm will range from about $1 in November to about 94 cents in March. The lower rate takes into account an Arizona Corporation Commission adjustor credit, Salkowski said.
“We use a formula designed to cushion customers from rapid price swings. As a result, our customers are never billed exactly what the company is paying for gas,” he said. “When the cost of gas increases rapidly, we typically under collect for gas and sometimes have to add a surcharge. But in this case, gas prices dropped pretty rapidly, so it’s an over collection.”
UniSource will base the credit at 8 cents per therm, which is a unit that measures the energy in natural gas. The credit will reduce an average monthly bill by $5.85 during the next five months and about $1.28 during the summer months, Salkowski said.
Gas companies recover the cost of the gas they purchase, including its transportation costs, through a Purchased Gas Adjustor rate. The PGA rate is calculated based on a 12 month rolling average. The rolling average is designed to reduce the volatility of gas costs passed on to customers, according to a release from the ACC.
The gas rates have lowered because of an increase in the supply of natural gas and lower manufacturing, Southwest Gas Corp. spokesperson Cynthia Messina said. Southwest Gas services Phoenix, much of Arizona and Nevada.
“Customers in Arizona are able to take advantage of natural gas prices right now,” she said. “Southwest and other companies do not take advantage of the price of natural gas. We just adjust our prices accordingly. It all goes to the customers.”
Salkowski said the application process is necessary for customers to see changes.
“We don’t make a profit off of the charges so we track the difference and then apply for the change,” Salkowski said. The credit does not apply to individual customers but properties and the current customer-base. “(Residents or businesses) moving away wouldn’t get a credit. The same would be true for someone who just moves into town and receives the benefit of the credit without having paid costs into the system.”
The system of constantly adjusting charges based on previous rates not only limits severe fluctuation but also is easier to track, Salkowski said.
“It would be very difficult as a company to track individual gas costs and provide either surcharges or credits based on an individual basis,” he said. “ It’s not something industry typically does.”
UniSource has also filed a request for higher rates that would increase bills about 6 percent. The company filed for the application due to steadily rising expenses and about $54 million spent strengthening and expanding the system and adding 5,000 new customers, Salkowski said. UniSource has filed the rate case but an administrative law judge has not issued a recommendation order that must be filed before the possible increase.
“These higher rates would still be lower than what customers paid last winter and wouldn’t be applied until early 2010,” Salkowski said. “Residents will see that decline from last year even if it’s approved.”
You can contact the reporter at nbruttell@havasunews.com
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