CHARLOTTE, N.C., Jan. 17 /PRNewswire-FirstCall/ -- For the second time in three weeks, Piedmont Natural Gas has filed a request with state regulators to reduce its rates as a result of the continuing decline in wholesale natural gas costs. If approved, the new rates would go into effect February 1.
The latest request seeks a reduction in the Company's wholesale cost of gas component included in customer rates from its currently approved level of $11.00 per dekatherm to $8.50 per dekatherm, a 22.7% decrease. The current filing follows on the heels of an earlier decrease in the wholesale cost of gas component from $13.00 per dekatherm to $11.00 per dekatherm, approved by state regulators a little over two weeks ago.
"As we have said all along, our customers pay what we pay for natural gas. With the recent sharp decline in wholesale natural gas prices, it is only appropriate that customer bills reflect these significantly lower wholesale costs. This is welcome news for our customers and for our company," said Thomas E. Skains, chairman, president and chief executive officer of Piedmont Natural Gas.
The latest reduction, if approved, would result in average savings of approximately $30 to $40 for residential customers in February, assuming normal weather during the month. The reduction could also result in lower monthly payments for some Equal Payment Plan (EPP) customers whose current payment amounts may reflect a higher wholesale cost of gas component. For more information about Piedmont's EPP, customers are urged to visit http://www.naturalgasanswers.com/.
Wholesale gas prices have come down dramatically from their December peak. Gulf coast production facilities and supply infrastructure continue to come back on line after last fall's devastating hurricanes and prices have begun to moderate. Recent warm weather in many parts of the country has also impacted consumption and extended the decline in wholesale prices. Even with the proposed reduction in the wholesale cost of gas component, however, the cost of gas still remains above last year's prices and could change in future months.
Piedmont is continuing to urge its customers to take steps to combat higher wholesale natural gas costs. At http://www.naturalgasanswers.com/, customers can find a wealth of information, including conservation tips. The site also features an easy-to-use link that customers may use to encourage elected officials to fund additional support for the Low-Income Home Energy Assistance Program (LIHEAP) and advocate access to additional domestic supply sources of natural gas.
Forward-Looking Statement
This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available and are believed to be reasonable and are made in good faith. However, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, economic conditions, competition from other providers of similar products and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not rely on these forward-looking statements when making investment decisions. The words "expect," "believe," "project," "anticipate," "intend," "should," "could," "will" and variations of such words and similar expressions are intended to identify forward-looking statements. We do not undertake any obligation to update publicly any forward- looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont's filings with the SEC on Forms 10-K and Forms 10-Q, which are available on the SEC's website at http://www.sec.gov/.
About Piedmont Natural Gas
Piedmont Natural Gas is an energy services company primarily engaged in the distribution of natural gas to 990,000 residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 61,000 customers served by municipalities who are wholesale customers. Our subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation. More information about Piedmont Natural Gas is available on the Internet at http://www.piedmontng.com/.
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