Jul. 1--Continued weak demand coupled with relatively strong supply have combined to bring a smile to Western Pennsylvania's natural gas users for the three-month period beginning today.

Two of the region's three largest natural gas distribution companies submitted and had approved by the state Public Utility Commission lower rates for the July through September period. The third utility's rates remain unchanged for a second consecutive quarter.

The so-called gas cost rate adjustment resulted in a significant decrease in monthly prices to residential customers, led by Dominion Peoples Gas, which reduced its natural gas price to $7 per mcf, from the spring quarter's $8.87 per thousand cubic feet, or mcf.

For the typical Dominion Peoples customer who uses 98 mcf annually, the average monthly cost will drop during July, August and September to $86 from $101.

"This is a continuation of what we've seen actually for the last four quarters, where demand is down and supply is up," said Dominion Peoples spokesman Elmore Lockley. "This is a simple example of supply and demand."

Columbia Gas of Pennsylvania's quarterly rate fell to $10.54 per mcf, from last quarter's $12.69. For a typical Columbia Gas user of 86.4 mcf per year, average monthly bills will fall to $75.87 from $91.34.

Equitable Gas Co.'s residential customers, using 98 mcf annually, will maintain a monthly rate during July through September of $126.46.

"We looked at (New York Mercantile Exchange) prices and our prices, and we didn't see a lot of change," said John Quinn, an Equitable vice president.

Prices on the NYMEX Tuesday for delivery in August closed at $3.852 per mcf -- more than $9 per mcf lower than the price just one year ago.

Rick Stouffer can be reached via e-mail or at 412-320-7853.

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