Philadelphia Gas Works announced today that it will lower its residential rates 3 percent on Tuesday to reflect the depressed price of natural gas, which is at a seven-year low.
The city-owned utility said it will charge $1.53 per 100 cubic feet of natural gas, down 5 cents. It was the fifth straight reduction, totaling 28 percent, since energy prices peaked in the summer of 2008.
The latest increase will save a typical residential customer about $2.25 a month, PGW spokesman Cameron L. Kline said.
PGW, like other regulated utilities, is required to pass the commodity cost through to users without markup. Rates are adjusted periodically to reflect fluctuations in gas price.