Peco to cut commodity gas rate 15%

Thanks to weak natural-gas prices on the wholesale market, Peco Energy Co. says it will cut its gas customers' commodity rate by about 15 percent starting Sunday.

The company said a typical household that uses an average of 8,000 cubic feet per month would save about $24 in March if weather was typical, and $12 per month on a year-round basis, as a result of the decrease. Including the company's flat monthly charge of $10.75, such a customer's average monthly bill would drop from $121 to $109, said spokesman Michael Wood.

Wood said Peco was cutting the gas-rate charge from $1.01 per 100 cubic feet to 86 cents. Residential customers also pay a delivery charge of about 36 cents per 100 cubic feet.

Pennsylvania gas utilities are required to adjust their gas-rate charges each quarter, based on their actual expenses for purchasing the commodity.

Peco, a subsidiary of Chicago's Exelon Corp., provides gas to about 485,000 households and businesses in Philadelphia's Pennsylvania suburbs.    - Jeff Gelles