LG&E predicts lower heating costs for natural gas customers this - WDRB 41 Louisville News

LG&E predicts lower heating costs for natural gas customers this winter

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LOUISVILLE, Ky. (WDRB) -- As winter approaches, there’s good news for Louisville Gas and Electric customers. If approved by the Kentucky Public Service Commission, the utility’s residential natural gas customers can expect to see a decrease of nearly 15 percent on an average heating bill.

That's according to a news release from the company. 

For LG&E residential gas customers using an average of 6,000 cubic feet per month, the drop equates to about $10 a month. The lower heating costs are the result of a decrease in the price of wholesale natural gas.

LG&E purchases natural gas on the open market from a variety of suppliers year-round. That enables the company to store natural gas in its underground storage fields during the summer, when natural gas prices are typically lower, then purchase additional fuel during the winter months to supplement what’s already been stored and meet customers’ needs.

The wholesale natural gas cost is passed on to customers dollar-for-dollar, meaning they pay the same as the wholesale price. Because the cost of wholesale natural gas fluctuates, LG&E files a quarterly natural gas cost adjustment with the KPSC -- to recover the utility’s cost to purchase the gas it sells.

If approved, the decrease will be in effect from Nov. 1, 2015, to Jan. 31, 2016.

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