China and Russia signed a framework agreement Tuesday that could see a steady flow of natural gas to energy-hungry China from its resource-rich neighbor.

There’s good news for people worried about winter heating bills. People using natural gas this winter stand to save $105, compared with last year, and propane users will get even bigger savings, the government said. Households that use heating oil or electric heat also are expected to spend less during the heating season. The U.S. Energy Information Administration said in its annual winter outlook yesterday that lower fuel costs across the board and an expected milder winter will cut average heating costs for the upcoming season by 8 percent compared to last year—to about $960.

Richmond Mayor Dwight C. Jones announced an 18-percent reduction today in the city’s purchased gas cost, which he said will result in an 11-percent gas bill reduction for a typical residential customer. Jones said in a statement that the decrease came as a result of a decline in natural gas prices over the last several months. “I am pleased that this fluctuation in natural gas prices is to the benefit of the consumer. The fact that natural gas bills will continue to go down for our customers is good news I’m happy to bring during this turbulent economic time,“ Jones said.

The typical Columbia Gas of Virginia customer will see an increase of about $2.83 in their monthly natural gas bill this fall compared with the summer. The company, which has 240,000 customers in Virginia, announced its quarterly rate adjustment yesterday. Even with the increase from the summer, Columbia said customers’ monthly payments will be about 24 percent less—about $13 for the average customer—compared with the fall of 2008, thanks to a decline in natural gas costs.

America’s supply of natural gas is considerably greater than commonly thought, thanks to advances in recovery technology that now allow for drilling in shale rock. The nation’s recoverable reserves stand at more than 2,000 trillion cubic feet. At current rates of consumption, that means the U.S. will not run out until roughly 2100—all other things being equal.

The country’s natural-gas reserves are much bigger than previously thought, according to a report released yesterday. Thanks to new technology that has allowed producers to drill for gas in shale rock, the Potential Gas Committee in Golden, Colo., said that the country’s estimated reserves are 35 percent higher than just two years ago and have reached the highest level since the group started tracking the information 44 years ago.

Former Gov. and U.S. Sen. George Allen has launched an organization, the American Energy Freedom Center, to try to influence the public debate about energy. In a conference call with reporters Tuesday, Allen said coal, oil and natural gas are the solution to the nation’s energy problem. “The sun doesn’t shine all the time; the wind doesn’t blow all the time,“ he said, referring to alternative energy sources of wind and solar power.

Slower demand and lower prices for natural gas will mean cheaper monthly bills for some Richmond-area customers this summer. Columbia Gas of Virginia said it reduced gas rates by more than 16 percent, effective yesterday, for its 240,000 natural-gas customers in Virginia, including about 60,000 in parts of suburban Richmond. The cut reflects a drop in natural-gas wholesale prices, which utilities pass along dollar for dollar to customers. The new rates, effective for June, July and August, do not affect other charges such as fees for service and delivery of gas as well as state and local taxes.

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 60 million American homes that rely on natural gas for heat can expect substantially lower bills next winter thanks to a glut in supply and the weak economy. Just as distributors start to lock in contracts for the coming winter, natural gas prices have fallen almost 75 percent. Not all of that will show up as savings on the heating bill, but it should still mean noticeable savings.

Dominion Virginia Power received permission from the State Corporation Commission yesterday to build a new 580-megawatt electricity-generating facility in Buckingham County. “We are pleased with the decision and the SCC’s recognition that new generation is needed in Virginia,“ said Mark F. McGettrick, president and chief executive officer of Dominion Generation, which will operate the plant for Dominion Virginia Power.

Richmonders will get a break on their natural-gas bills next month, when the city will cut its charge for fuel because of a months-old drop in wholesale prices. The move will cut a typical consumer’s bill by a bit less than 17 percent and will affect about 110,000 Richmond Department of Public Utilities customers in the city and suburbs.