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.
The price for PGW's commercial, industrial and municipal customers will also decrease on Tuesday, by varying amounts.
The company anticipates that its rates will remain lower through the winter, based on current market conditions, Kline said.
The new rates will stay in effect until Dec. 1.
The basic $12 monthly customer charge is unaffected by the rate change.