In preparing its customers for the winter heating season, Washington, DC-based Washington Gas said that assuming normal winter temperatures, customers can expect heating bills to vary slightly from last year — within a range of approximately 5% higher or lower — depending upon the amount of gas a customer uses, the type of service and the market price of gas.

The utility, which serves more than one million customers throughout the city and the surrounding region, said the average cost of natural gas for a residential heating customer was approximately $1,000 last winter.

“While we try to give customers a reasonable expectation at the beginning of the heating season to help them manage costs, it’s important to realize that changing weather, demand for fuel and other economic factors can have a significant impact on the actual cost of the gas supply during the winter,” noted Eric Grant, a Washington Gas spokesperson.

Washington Gas said it takes a number of steps in managing its supply portfolio to help stabilize customer natural bills. “Each summer we purchase about one-third of our customers’ winter demand and store it for use when the weather is colder. The average price of natural gas during the summer historically has been lower than during the winter,” said Adrian Chapman, vice president of operations, regulatory affairs and energy acquisition at Washington Gas. “We have purchased another 18% of our customers’ winter demand using pricing methods that help reduce the effect of natural gas price fluctuations.”

The utility added that regulatory initiatives approved in Maryland and Virginia also can help minimize monthly bill volatility, and a similar proposal is pending in the District of Columbia.

©Copyright 2007Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.