Starting in September, customers of DeKalb-Cherokee Gas District will be paying less for natural gas.
The utilities board of directors voted to approve the reduction this month, said board chairman and Fort Payne Mayor Bill Jordan. He said customers would see an average 18 percent reduction in natural gas rates and the decrease would affect residential, commercial, industrial and agricultural customers throughout the district.
“Our cost control and natural gas purchasing strategies, coupled with lower natural gas costs, have enabled us to decrease prices to DeKalb-Cherokee customers,” Jordan said.
He said the decrease is possible because the price of natural gas on the futures market has declined. Jordan said the decrease should mean an average savings of $31 per month per customer during the winter heating season, based on the average usage of DC Gas’ residential customers last winter – one of the coldest residents of North Alabama had experienced in more than 30 years.
“Many residents saw their monthly bill double compared to the previous year,” Jordan said. “Early forecasts do not predict as cold a winter this season, so bills may not be as high as last year due to less usage combined with the rate reduction.”
Monthly gas bills are based on usage multiplied by the rate.
“While we don’t know what the wholesale prices of natural gas will be in the future, given increased global demand and price volatility, my hope is that our customers won’t be looking at an increase for quite a while,” said DeKalb-Cherokee Gas General Manager Keith Davis. “We are pleased we were able to work with our suppliers on this new contract and secure these lower rates for all our customers.”
He said the price paid for natural gas makes up about 80 percent of the average customer’s bill.
“It’s strictly a pass-through. We charge what we pay for it. We only make money on the delivery service portion of the bill,” Davis said. “I hope the reaction of customers is to breathe a sigh of relief but at the same time not let their guard down. Customers need to be mindful of conservation steps they can take. If you want to spend less, you need to use less energy.”
