Peoples Natural Gas customers will pay less for their natural gas beginning on Sunday.
The cost recovery rate, about 75 percent of a customer's bill, is decreasing for the third consecutive quarter. The rate will decrease from $4.13 per thousand cubic feet to $3.39 per thousand cubic feet, said Lynda Petrichevich, manager of rates and regulatory affairs. The price will remain in effect through Sept. 30.
The average residential customer who uses 92,000 cubic feet a year, or 7.6 mcf a month, will see his overall bill decrease to about $63, about $5 less than it was previously, Petrichevich said.
"Basically we have seen prices declining due to Marcellus Shale and other economic factors. The price is lower than what we originally projected it would be," Petrichevich said.
Peoples officials don't expect any significant changes in the months ahead.
"Over the long term, there will be fluctuations up and down but it seems to level off," said Barry Kukovich, company spokesman.
"I don't expect to see any major changes, we've seen prices remain pretty stable, Petrichevich said.
Supply is outweighing demand, said Louis D'Amico, president of the Pennsylvania Independent Oil and Gas Association.
"The success of the natural gas producing industry, coupled with the weak economy, has created a huge supply versus demand imbalance, which has dramatically decreased natural gas prices. The result is billions in savings to residential and industrial customers - a huge economic stimulus funded by industry instead of the taxpayer," D'Amico said.
Peoples' delivery rate will remain unchanged at $3.26 per mcf.
Peoples serves 360,000 customers in 16 western Pennsylvania counties, including 31,200 homes in Blair County.
Mirror Staff Writer Walt Frank is at 946-7467.
