An apparent disparity between continued low wholesale natural gas prices and the amount Atlanta-area consumers are paying for natural gas needs to be cleared up by Georgia marketers, according to Stan Wise, chairman of the state’s Public Service Commission (PSC).

Consumers in the Atlanta metropolitan area paid $1.431/therm for gas in November, 37.1% more than in the average U.S. city, according to a report issued Dec. 29 by the Bureau of Labor Statistics (BLS). “Over the past five years, Atlanta utility (piped) gas prices have remained above national prices,” according to the report.

But Wise said he sees a disconnect between the BLS data and reports of continued low natural gas prices nationally. He has requested that Atlanta-area marketers file by Jan. 11 briefs explaining the apparent price contradiction.

“I’d like to hear from the marketers to explain these conflicting reports,” Wise said.

February natural gas fell nearly 4 cents last Friday to settle at $2.989/Mcf, its lowest point in more than two years (see Daily GPI, Jan. 3). And prices aren’t expected to increase much this year either, according to analysts with Raymond James & Associates Inc., who on Tuesday cut their outlook for 2012 U.S. natural gas prices by a quarter to $3.25/Mcf (see Daily GPI, Jan. 4).

Approximately 1.5 million residential customers (more than 80% of the state’s residential gas customers) have purchased their natural gas directly from marketers since Atlanta Gas Light Co. was deregulated in 1998 (see Daily GPI, Oct. 12, 1998).

While Atlanta-area consumers paid more than the national average for natural gas in November, they paid 11.7% less than average for electricity and 4.0% less for gasoline, according to the BLS report.

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