Columbia Gas to reduce average customer bill in Va. by 16 percent

Reflecting the declining natural-gas price trend and the approach of the warm season, Columbia Gas of Virginia plans to reduce its average customer bill by 16 percent this summer.

Chester-based Columbia said the change should save its customers $6.76 on the typical monthly bill, starting May 29.

The average gas cost will decrease to $34.97 a month compared with the current level of $41.73. The figures are based on the average monthly summer usage of 2,300 cubic feet of natural gas. The utility filed for the rate reduction with the State Corporation Commission.

The company said the rate reduction will mean customer bills will be down by nearly 37 percent compared with the near-record highs in August. Gas prices typically decline when the winter heating season ends.

Columbia's gas costs are usually adjusted quarterly to reflect the price the company pays for natural gas, which by law is passed on dollar-for-dollar to customers without markup.

Though spot prices rose this week, natural gas has been trading at multiyear lows, according to the U.S. Energy Information Administration. Moderate temperatures and the economic downturn have resulted in lower consumption.

Columbia serves more than 240,000 customers in Virginia, including parts of suburban Richmond.

Contact Peter Bacqué at (804) 649-6813 or .