CHARLESTON, W.Va. — West Virginians who heat their homes with natural gas will be pleased to learn the cost for the coming winter will likely be significantly lower than 2022.
The state Public Service Commission has issued rulings on the amount gas companies in West Virginia may charge to purchase gas for the coming winter season. The two largest companies in the state will see a significant decrease in that purchase rate.
Hope Gas customers will see prices fall by a little more than 40 percent since last winter. Customers of Mountaineer Gas will enjoy a 20 percent reduction in the purchase price. Mountaineer and Hope make up 89 percent of the gas service in West Virginia. The other 11 percent is shared by a dozen different companies. Only two of those sought an increase.
Each year, natural gas utilities must file purchased gas adjustment cases with the Commission, indicating how much they anticipate they will pay for gas in the coming year. The price utilities pay their suppliers is not regulated by the Commission nor the federal government. Rather, it is determined by the market. The Commission reviews the amounts requested and often adjusts the amount it will permit the companies to charge their customers.
The purchased gas component typically makes up less than half of the total amount of a residential gas bill. Last year, however, the market was particularly volatile, which resulted in a significant increase in the purchased gas component of residential bills. This year, the market has settled considerably and the prices requested have drastically fallen.
The new rates will take effect in November.