Lower Gas-Related Costs Lead to Credit on UES Customers' Bills
Posted on: Wednesday, 19 September 2007, 18:00 CDT
UniSource Energy Services (UES) natural gas bills will be reduced this winter by a four-cent-per-therm credit made possible by lower wholesale prices and reduced pipeline costs.
The Purchased Gas Adjustor (PGA) Credit approved today by the Arizona Corporation Commission (ACC) will appear on customers' bills from October 2007 through April 2008. Its impact will vary with usage, but a typical residential customer using 100 therms in a cold winter month would realize savings of $4.
The credit will pass along a refund UES will receive from one of its gas pipeline suppliers due to the recent settlement of a rate proceeding. It also will refund excess revenues recovered by UES through a PGA billing formula that insulates customers from fluctuations in wholesale gas prices.
"This is a nice change of pace from recent years, when rising wholesale prices required the use of a PGA Surcharge to recover the additional cost of our gas purchases," said David Hutchens, Vice President of Wholesale Energy for UES' parent company, UniSource Energy Corporation (NYSE:UNS). "This winter, we're pleased to pass some savings along to our customers."
The credit alone will not lead to lower gas bills this winter, said Hutchens, who also oversees UES' natural gas operations. Energy market fluctuations could lead to increases in the PGA Charge, which passes along the wholesale cost of gas to UES customers without any markup.
Meanwhile, the ACC could act soon on UES' request for higher distribution rates, which cover the cost of the company's operations and infrastructure. UES has proposed rates that would increase residential bills by an average of 7 percent over the course of a year.
UniSource Energy Services provides natural gas service to more than 146,000 customers in Mohave, Yavapai, Coconino, Navajo and Santa Cruz Counties. The company also provides electric service to more than 94,000 customers in Mohave and Santa Cruz Counties. For more information about UES, visit www.uesaz.com. For more information about UniSource Energy, visit www.uns.com.
Source: Business Wire
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