PECO: Natural gas rate down 17% compared with last winter

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PECO’s natural gas customers in the Philadelphia suburbs will pay 17.2 percent less for gas this winter, on average, compared with last January. PECO delivers natural gas to 485,000 customers in Bucks, Chester, Delaware, and Montgomery counties.

Effective Dec. 1, PECO’s rate will be $1.20 per hundred cubic feet (Ccf) of natural gas, compared with $1.14 per Ccf previously and $1.45 per Ccf last January, for an average residential heating customer using 160 Ccf of natural gas per winter month.* A total bill will be $191.29, down roughly $40 vs. last January.

“We are very pleased to provide our customers with a favorable price for this winter, lower than the past two years. Natural gas is the preferred fuel for heating in our area, and we are ready to ensure reliable service this winter,” said Ron Bradley, PECO vice president Gas.

A customer’s actual bill depends on a variety of factors, including weather, household size, and the energy efficiency of the home and its appliances. Customers can save money by ensuring their home heater is well maintained, weatherizing the home, and using energy efficiently. For energy saving tips and information on rebates on natural gas appliances, visit www.peco.com/save.

PECO also offers a variety of programs to help customers who may be struggling to manage their utility costs. Customers are encouraged to contact the company for budget billing and other payment options at www.peco.com/help.

The new PECO gas rate will be lower than Dec. 1 2007 ($1.28 per Ccf) and 2008 ($1.33 per Ccf). PECO can adjust its gas commodity rate quarterly (March 1, June 1, Sept.1, and Dec. 1) to reflect changes in the wholesale market. The commodity rate is a “pass through” of PECO’s wholesale gas supply, interstate pipeline costs, storage facilities and related services without markup.

As gas commodity prices fell on the wholesale market, PECO decreased its commodity rate earlier this year, on March 1 and June 1. Its December rate now will be 5.39 cents per Ccf higher than the current rate, due to higher projected fuel supply costs partially offset by the annual reconciliation of the Universal Service Fund Charge. This charge recovers certain expenses for the company’s customer assistance program as approved by the Pennsylvania Public Utility Commission.

About half of PECO’s gas commodity costs are based on the non-winter purchases of gas placed into storage and gas purchased in the futures market to protect customers from any volatility in the wholesale market, said Carlos Thillet, PECO manager, Gas Supply & Transportation. The other half of the gas commodity rate is based on current rates set by daily, weekly or monthly market indexes at the time the gas flows to the Philadelphia region.

The heating season brings peak demand for natural gas in the region. In preparation, PECO completed 19 infrastructure projects to improve gas service reliability in certain areas. Work was done in Belmont Hills, Bala, and Wynnewood sections of Lower Merion, Haverford, Villanova, Radnor, Upper Darby and Coatesville. The projects primarily involved replacement of underground gas mains and upgrading other facilities to meet increased customer needs and improve distribution pressure.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation EXC. PECO serves 1.6 million electric and 485,000 natural gas customers in southeastern Pennsylvania and employs about 2,400 people in the region. PECO delivered 83.7 billion cubic feet of natural gas and 39.4 billion kilowatt-hours of electricity in 2008.Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.

Michael Wood
PECO
215-841-4125 or -5555
Michael.wood@peco-energy.com

Copyright 2009 Business Wire

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