LG&E press release on rate decrease
September 30, 2009
LG&E Requests Reduction in Winter Natural Gas Costs to Lowest Level Since 2003
Approval Would Mean 39 Percent Decrease For Average Residential Monthly Bill Compared to Same Quarter a Year Ago
(LOUISVILLE, Ky.) Natural gas costs for Louisville Gas and Electric Company's customers will be 39 percent lower compared to the same quarter last year, beginning Nov. 1 through Jan. 31, 2010, if the Kentucky Public Service Commission approves the company's quarterly natural gas cost adjustment, which was filed today.
At the national level, declines in demand for natural gas and an abundance of natural gas supplies have driven wholesale natural gas costs to their lowest level in several years.
If the new gas cost adjustment is approved by the KPSC, a typical residential customer with average usage of 70 Ccf per month will pay about $59.63 per month from Nov. 1 through Jan. 31, 2010. That amount compares to about $97.78 per month based on the costs for the same quarter one year ago - a decrease of more than $38 per month.
"With approval of our latest gas cost adjustment, our customers will see winter natural gas costs at the lowest level in six years, which is especially good news with the heating season approaching," said Victor A. Staffieri, E.ON U.S. Chairman, CEO and President. "However, it's still important to make wise energy choices to better manage winter heating bills, and taking steps to improve your home's energy efficiency before colder temperatures arrive is the best place to begin."
For a portion of its customers' natural gas needs, LG&E purchases natural gas that is typically less expensive during spring and summer months and places it in underground storage for use during the heating season when wholesale natural gas costs typically are highest.
Most of an LG&E customer's monthly natural gas bill is the actual cost of wholesale natural gas which the company does not mark up. This portion of a customer's bill is adjusted up or down on a quarterly basis and recovers gas costs on a dollar-for-dollar basis.
The remaining portion covers the costs that are associated with the operation and maintenance of the LG&E facilities designed to deliver gas to the customer's home in a safe and reliable manner.
Customers can take advantage of the company's budget payment plan and many energy efficiency offerings to help them proactively manage their monthly utility bills and natural gas usage. More information is available at www.eon-us.com.
COMPARED TO SAME QUARTER ONE YEAR AGO:
Quarter Typical Bill Dollar Decrease % Decrease
Nov 2008 - Jan 2009 $ 97.78 $38.15 39%
Nov 2009 - Jan 2010 $ 59.63