CHARLOTTE, N.C. (WNCT) Piedmont Natural Gas has filed requests with the utility commissions in North Carolina and South Carolina to decrease natural gas costs for customers in the two states.
Reducing the commodity charge for natural gas will more than offset a rate increase Piedmont recently requested to recover costs related to system growth, pipeline integrity management, infrastructure investments, and safety and security upgrades.
Even with the requested rate increase, North Carolina customers will see a net decrease in the average residential customer’s bill by 13 cents per dekatherm or $7.80 per year.
In South Carolina, the requested decrease in the commodity price reduces by more than half a recent rate increase approved by the Public Service Commission of South Carolina.
The approximate effect of this change on an average residential customer’s bill is a net rate increase of 41 cents per dekatherm, a yearly increase of about $23.
Piedmont’s bill has multiple rate components, one of which is the benchmark, or commodity, cost of natural gas.
The requested decrease in the benchmark cost of natural gas from $2.75 per dekatherm to $2.25 per dekatherm in both states is expected to be effective in November 2019.
Piedmont requests occasional benchmark rate adjustments to reflect changes in the commodity cost of natural gas because, by law, Piedmont must pass through to customers the actual commodity cost on a dollar-for-dollar basis.