Louisville Gas and Electric Co. (LG&E) filed with the Kentucky Public Service Commission to decrease the gas supply clause (GSC) component of its retail rates for consumption Feb. 1 toApril 30, 2007. The newly filed GSC factor of 65.666 cents per 100 cubic feet is a reduction of 11.082 cents from the current rate of 76.748 cents. By comparison, the rate for Feb. 1, 2006 was 127.454 cents.
A typical residential customer consuming 7,000 cubic feet per month will pay $65.76 per month after Feb. 1 compared to $73.44 per month currently. Compared to the current quarter, this represents a decrease of about 10% in the typical residential bill and a decrease of about 40% from a year ago when the average bill was $109.12.
The current gas market is being influenced by a number of factors that tend to push wholesale prices down, LG&E said. The 2005-2006 winter was warmer than normal, significantly reducing demand and increasing supplies. Storage across the country is 12% higher this year than a year ago and inventories are 9% above the five-year average.
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