Pacific Gas and Electric Co. Tuesday announced that due to a decrease in wholesale natural gas prices, and a decline in usage, the average residential gas bill in May is expected to decrease as much as 42% from April bills, to $47. The new rates will take effect May 7. The average residential customer uses 30 therms a month in the summer season (May-October) and 70 therms a month in winter (November-April). The anticipated drop in usage accounts for most of the significant decrease expected in monthly bills. However, the actual cost of gas is also declining in May. The procurement cost will be $0.78 per therm, compared with $0.84 per therm in April, a decrease of more than 9%. The delivery charge that customers pay the PG&E utility has not increased, and will not change.
Decline
Articles from Decline
Prices Keep Dropping, But by Lesser Amounts
Most prices kept falling Thursday but at a slower rate of decline than on Wednesday. Citing lower weekend load and the prospects for milder weather, a number of traders expect more softness today.
$4-Plus Chicago Rise Leads New Price Surges
A small decline at the MichCon and Consumers Power, and a largerone at the Southern California border were the only exceptions tothe raging bull market that continued to prevail in cash tradingThursday. Otherwise, average price increases ranged from about 50cents in parts of Louisiana to more than $4 at the Chicagocitygate.
Mild Forecast, Technical Weakness Push Dec. Expiry Lower
Fueled by moderating weather forecasts and following Monday’s21-cent decline, natural gas futures tumbled lower in a classicexpiration-day long liquidation Tuesday, as traders rolled theirprompt month positions into back months. After a back-breakingsell-off in the last five minutes of trading Monday, the Decembercontract gapped lower at the open and tumbled 35.2 cents to itsfinal resting place at $6.016 yesterday.
Double-Digit Decline Brings Bears Out of Woodwork
Following on the heels of Thursday’s losses, natural gas futuresgapped lower on the open Friday as traders took profits on theirlong positions in sympathy with similar selling in the crude oilpit. October crude finished down 5% on the day at $33.63 per bblwhile October natural gas slipped 2.4% to close at $4.880. OPEC wasscheduled to meet over the weekend in Vienna to discuss possibleproduction increases (check back with http://intelligencepress.comfor breaking news later Monday morning).
Early Survey Shows Production 0.5% Below 2Q1999 Levels
A preliminary survey of second quarter financial reports from 25 producers reveals a 0.5% decline in U.S. gas production compared to 2Q99. Out of 25 producers, 14 reported lower production and five of those showed double digit drops. Pioneer Resources, Ocean Energy, Union Pacific and Kerr McGee showed the largest U.S. production declines on a percentage basis.
Production 0.5% Below 2Q 1999
A survey of second quarter financial reports from 25 producersreveals a 0.5% decline in U.S. gas production compared to 2Q99. Outof 25 producers, fourteen reported lower production and basinexploration. Pioneer Resources, Ocean Energy, Union Pacific andKerr McGee showed the largest U.S. production declines.
Federal Funding Continues to Decline For GRI
GRI, formerly the Gas Research Institute, filed itsfourth-to-last annual research, development and demonstrationprogram application last week with FERC, requesting a budget of $70million and approval of its 2001-2005 RD&D Plan.
Preliminary Survey Shows 1Q Production Decline
One look at Nymex natural gas futures prices will tell yousupply is a little scarcer than consumers probably would like, andfirst quarter financial reports are confirming that production isdown from last year. Producer earnings soared during the firstquarter as a result of higher oil and gas prices, and lowerdomestic gas production should take some of the blame for the bullmarket.
Prices Flat in Most Areas; Northeast and West Decline
Weekend cash prices hit a plateau Friday in theMidcontinent/Midwest, Gulf Coast and Appalachia, but softened inthe Northeast and at most western points.
