National Grid customers will see lower heating bills this winter. Customers of the utility will benefit from reduced delivery rates under its most recent rate plan that went into effect on April 1, 2013. Typical residential heating customers could see a reduction of more than 9 percent on their total natural gas bill over the course of the heating season based on typical winter usage.
A typical residential heating customer who would ordinarily use about 711 therms during a normal heating season (from November to March) is forecasted to pay about $581 during the five-month period, or $62 less than last year for the same amount of usage. This natural gas bill is 35% lower than what a typical residential customer paid five years ago during the winter heating season.
A customer’s total natural gas bill consists of two components – the natural gas supply purchased by the Company and National Grid’s delivery costs. National Grid purchases natural gas supply in the wholesale markets on behalf of its customers, and works diligently to obtain the most favorable prices possible. The cost of those purchases is passed along to customers directly, with no mark-up. Although natural gas prices are forecasted to increase this winter under current market conditions, National Grid is able to temper those increases because of its purchasing program.
The delivery portion of the bill reflects National Grid’s cost to bring the gas directly to customers, maintain the local gas network, and provide emergency response and customer service. National Grid’s natural gas customers have been benefiting from reduced delivery rates since April 1st when the rate plan approved by the New York State Public Service Commission first went into effect.