Politics & Government

City Gas Customers Can Look Forward to 5 Percent Decrease in Natural Gas Rates

Council approved 6-0 passing on savings to customers as the natural gas utility fund for 2012 would be able to maintain a fund balance in excess of minimum reserve requirements.

The average monthly gas bill for a single family residence is expected to drop by $5.32 for this upcoming winter, thanks to passage of an ordinance by Enumclaw City Council Monday night.

This comes as a result in part of two actions on the part of city utility this fall that secured fixed lower prices for 80 percent of the anticipated needs for November 2011 through October 2012; and 40 percent of needs for November 2012 through March 2013, according to a memo by Public Works Director Chris Searcy.

As a whole, the estimated gas supply costs to the city utility is expected to decrease from $2,550,000 in 2011 to $2,399,000 in 2012.

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"It’s clear we're able to offer a rate decrease to customers," he told Council.

Searcy further explained that the utility would experience an increase in expenditures by about $26,000 for 2012 that factored in personnel, services and interfun charges but on the whole, the department still recommends a five percent across-the-board decrease in natural gas rates, retroactively effective November 1 of this year.

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However, monthly base charges for residential and commercial customers will remain at $6.25 and $10, respectively.

During Monday's meeting, this ordinance was intended as a first reading only, meaning Council was not obligated to take action. However, after clarifying that an earlier passage would help city staff in incorporating the decrease, Councilman Jim Hogan motioned for, and got approval from the rest of Council, to deem this ordinance an emergency issue that could be acted on at first reading.

Gas rates were last decreased by five percent on January 1 of this year in response to lower gas supply costs, said Searcy.

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