Mar. 21--Natural gas and electric customers could see a substantial drop in their utility bills this summer if the New Hampshire Public Utilities Commission approves a rate decrease that would take effect May 1.

New Hampshire's National Grid gas customers could see an average decrease of 48 percent and electricity customers could see a drop of 33 percent. That gas price would be the lowest customers have paid since 2002 and the electricity rates are similar to what customers paid in 2005. The average price drop would be $29 a month for gas and $17 a month for electricity, according to National Grid spokesman David Graves.

The utility proposed the price decrease last week and it could be approved next month. Public Utilities Commission hearings are scheduled for April 9 and 15.

Unitil also has proposed price decreases for New Hampshire customers -- 19 percent for natural gas and 15 percent for electricity. That would translate into a monthly savings of about $10 for natural gas customers and $13 for electricity customers, according to Unitil spokesman George Gantz.

Steve Frink, assistant director of the Public Utilities Commission's Gas and Water Division, said he wouldn't be surprised if natural gas prices drop even lower.

When the two utilities made their cost projections for the summer, they used a commodity price from Jan. 29 of $4.72. Yesterday, the New York Mercantile Exchange price had dropped to $4.24.

"If prices hold right now, compared to the projection, the rates could be lower still," Frink said.

He said the utilities may decide to request an even lower rate before the Public Utilities Commission makes its decision next month.

The drop in natural gas prices is occurring nationwide, but prices differ around the country because of shipping costs. Those shipping costs have typically made up 30 percent of customers' monthly bills, but with the price of natural gas dropping so dramatically, Frink said he expects that to make up a larger percentage.

A year ago, prices were much higher because there was higher demand and companies were drilling aggressively. But over the last couple of months, things have changed.

"There is still a greater supply than there is a demand," Frink said.SClBLast year, National Grid was charging $1.40 per therm for natural gas and the price under the most recent proposal would drop to 40 cents per therm. Unitil was charging $1.12 per therm last summer; this summer, the utility projects a price of 80 cents. The average single-family home uses 1,250 therms per year with 300 over the summer, according to Frink.

Steve Mullen, assistant director of the electric division with the Public Utilities Commission, said a lot of the decrease in electric rates is related to the price of gas.

"A lot of times when gas prices go down, a lot of other utilities go down as well," Mullen said.

But he warned the price decrease would be temporary. Utilities will make their rate change requests with the Public Utilities Commission again in the fall. It's too early to tell whether they will continue to drop or go back up, Mullen said.

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