PECO to Lower Gas Rate by 5%, Effective Sept. 1

PECO will lower its natural gas rate, effective Sept. 1, due to a projected decrease in gas supply costs in the wholesale market. The bills for the typical residential customer will drop by 5.1 percent, or about $7 a month.

PECO can adjust the “purchased gas cost” portion of its gas rate each quarter, if necessary, to reflect changes in the commodity market prices. The pgc, as it is known, covers three line items on a customer’s bill – the gas commodity charge, the gas balancing charge, and gas cost adjustment, each of which will decrease slightly for a total of nine cents per ccf, or hundreds of cubic feet, of a customer’s gas usage.

PECO’s gas rate will decrease from $1.68 per ccf, or hundred cubic feet, to $1.59, including taxes. The commodity charges are a pass through without markup by the utility and make up about 80 percent of the total rate. PECO’s customer service and delivery charges are unaffected by this change.

On average, a residential customer uses about 80 ccf per month. Actual bills reflect usage, size of the home, number of gas appliances and their energy efficiency, and weather.

Much like gasoline and heating oil, market prices for natural gas rose for much of the year but have moderated this summer and are presently more favorable for consumers. PECO can adjust its rate again Dec. 1, which will reflect the company’s reconciliation of supply costs for this year and its best projection of its gas supply costs for 2009. Unlike retailers, regulated gas utilities can only adjust rates quarterly.

Even with higher prices than last year at this time, natural gas is the best energy value for this heating season, based on figures from the Department of Energy’s Energy Information Administration. Nearly 600 PECO customers who used another heating source previously have converted to natural gas in recent months, more than double the number of conversions to gas among residential customers in either 2007 or 2006.

PECO provides resources on its Web site for customers to better manage their utility bill, including budget billing plans, discounted energy efficiency products, energy saving tips, and an online home energy audit program for low-income customers. Consumers can visit www.peco.com and click “Save Energy, Save Money.” Low-income customers who may be eligible for PECO’s discounted rates, heating assistance grants or other assistance can call 1-800-774-7040.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE: EXC). PECO serves 1.6 million electric and 480,000 natural gas customers in southeastern Pennsylvania and employs about 2,500 people in the region. Founded in 1881, PECO is one of the Greater Philadelphia Region’s most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.