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Natural Gas Prices At 7-year Low

Consumers Might Want To Look At Fixed-price Contracts From An Alternate Supplier, Analysts Say

August 29, 2009|By Liz F. Kay , liz.kay@baltsun.com

BGE officials anticipate that its customers will see a 30 percent reduction in their natural gas bills compared with last winter, when many people experienced sky-high charges not only for gas but also electricity. Company executives told regulators that several factors, including lower temperatures, high energy costs and varying billing cycles, contributed to the unexpected bills.

State regulators also considered requiring utilities to lock in winter prices in advance but have not issued a ruling, Case said. Consumer electric rates haven't fallen as far as natural gas prices, partly because BGE bought electricity for multiyear periods when prices were high.

But wholesale electricity prices have fallen, and residential prices are expected to come down a bit starting in October as BGE's expensive contracts start to expire.

FOR THE RECORD - An article in Saturday's editions about natural gas prices incorrectly described Petroleum & Associates Corp. It is a closed-end fund. An information box with the article described an alternative gas supplier incorrectly. It is NOVEC Energy Solutions.
The Baltimore Sun regrets the errors.

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Alternate gas suppliers

These companies offer fixed-price contracts

BGE Home :

13-month contract: 89.9 cents per therm

Washington Gas Energy Services :

12-month contract: 71 cents per therm

24-month contract: 85 cent per therm

Northern Virginia Electric Cooperative:

12-month contract: 84 cents per therm

Source: Office of People's Counsel

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