(Source: The Decatur Daily)
By Catherine Godbey, The Decatur Daily, Ala.
Nov. 19--Decatur Utilities spent spring and summer preparing for the winter as officials lived by the motto "buy low." And once gas prices plummeted, they bought and bought and bought.
The strategy will save the average residential customer about $14 each month from November to March, officials said.
"If you take a customer that uses about 6,000 cubic feet, that will be about $62.10 for a winter bill," said Gary Borden, DU manager of business operations and management support. "That compares to about $76.50 from last year."
The savings include the monthly service charge and the increase in transportation costs. After six months debating the cost of transporting gas, Southern Natural Gas and its customers reached an agreement increasing the cost of transport from $8.25 per dekatherm to $9.65 per dekatherm.
For DU customers, the cost translates to $1.50 per month, Borden said.
The Birmingham-based company is responsible for delivering gas from the wellhead -- where the gas leaves the ground -- to Decatur. Initially, the company demanded $12.47 per dekatherm, which would have increased customers' bills by more than $6 monthly.
"The decrease in gas costs definitely out-steps the small increase of transportation rates," said DU General Manager Ray Hardin.
Larger customers will also see the savings. For 12,000 cubic feet, customers will incur a $116.70 monthly bill, which is a decrease from last year's average bill of $145.50.
"This is good news for our gas customers. The market made it favorable to lock in prices and reduce costs for customers," Borden said.
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