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BGE officials anticipating drop in gas heating costs
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Related Topics: BALTIMORE
BALTIMORE (Map, News) - Baltimore-area residents could save a hundred dollars on their gas bills this winter.
Assuming a normal winter season and the stability of weather around natural gas supply lines in the Gulf of Mexico, Baltimore Gas and Electric is anticipating savings of about 10 percent for its natural-gas customers this winter.
“What affects your [gas] bill is the price [of the gas] and it’s also how much [gas] you use,” said BGE director of gas pricing and care Laurie Duhan. “If the winter [weather] pans out to be close to normal, then the expectation is the [gas] bills should be down because the price [of gas] should be down.”
According to billing information from BGE, in November 2004 gas sold for 88.89 cents per therm. A therm is the heating measurement unit used by gas companies to determine their customers’ bill.
Customers paid $1.6305 per therm last November because of damage from hurricanes Katrina and Rita to onshore gas wells throughout the Gulf of Mexico region and the suppliers’ inability to pump the gas. Last month, with a relatively mild climate so far, the gas price plummeted to 72.30 cents per therm.
“[Prices] stayed fairly high through last winter,” Duhan said. “Now with the hurricanes behind us, that helps keep the prices more moderate.”
Good news turns into great news for consumers if the winter weather doesn’t take a turn for the worse. With the winter-heating season running from Nov. 1 to March 31, BGE is projecting an average of 95 cents per therm.
“They are saying that [this] winter should be lower than last year,” said Kim August, director of regulatory and external affairs for Washington Gas, which offers a 12-month contract of 99 cents per therm for residents in the BGE area. “It should be if the weather holds and it is still a mild winter.”
More information
» The Office of Home Energy Programs is offering assistance to needy families. Applications can be obtained at www.dhr.state.md.us/meap/down.htm, or by calling OHEP at 410-767-7218.
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8:45 AM MST on Sat., Apr. 21, 2007 re: "Co-op laws decried as prohibitive"
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Examiner Reader said:
So where are we with this effort? I assume it's dead or we would have heard more about it since December. It would aos be nice if reported would spell out approximately what BG&E's new proposed "price to compare" would be if nothing is done. They all say 50% increase, so to me that says to me: $0.113 x 1.5 = $.1695 (or there about) I'm glad I switched to WGES and got $0.089. I recently got a letter from them telling me I'll need to moving into a 1 or 2 year fixed contract soon. New rates for me are: $0.109 and $0.11 for 1 and 2 year contracts respectively. Note the site currently has offerings of $0.113 (for 5% wind power). The only thing close is Commerce at $0.092 and $0.098 variable rates. Pepco has a nice $0.127 100% green option so I could be saving the world. It's only appealing if the BG&E rates go up to what I calculated above (not including deferral interest). Feel free to chime in any time.
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