CLARKSBURG, W.Va., Oct. 24 /PRNewswire-FirstCall/ -- Dominion Hope, a
subsidiary of Dominion (NYSE: D), announced Wednesday an 18 percent
reduction in its residential rates, effective Nov. 1. The rates will reduce
the average monthly bill of the residential customer who uses 78 thousand
cubic feet (mcf) per year about $20, from about $111 to $91 per month.
The interim rate was approved by an administrative law judge of the
West Virginia Public Service Commission. Most of the reduction was caused
by lower actual and projected natural gas costs for the coming winter. Also
included was a 26.1 cents per mcf reduction resulting from a settlement of
historical gas costs.
Dominion Hope does not make a profit on the natural gas it purchases
for its customers. That cost is passed directly to the customers. The
company is required by law to buy the most reliable gas supply at the
lowest available cost.
Natural gas market prices have fluctuated during the last few years
because of tight supplies and weather-driven events. Current natural gas
market prices are lower because there have been no summer supply
disruptions, natural gas storage inventories are high, and summer natural
gas usage for power generation has been moderate because of milder summer
weather.
Dominion Hope purchases most of its natural gas from local West
Virginia producers, reducing the need to pay for long-distance pipeline
charges. The company also shops for much of its natural gas in the spring
and summer, when prices are generally less expensive, and injects it into
underground natural gas storage. Much of the gas that is provided in the
winter comes out of storage.
Dominion Hope serves about 115,000 customers in West Virginia. It is a
subsidiary of Dominion, one of the nation's largest producers of energy
with a portfolio of more than 26,500 megawatts of generation. Dominion
serves retail energy customers in 11 states. For more information about
Dominion, visit the company's Web site at http://www.dom.com.
SOURCE Dominion
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Related links:
http://www.dom.com
CONTACT:
Bob Fulton of Dominion, +1-304-627-3200,
Robert.E.Fulton@dom.com
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