PSE cuts natural-gas price 13 percent for home customers

Residential customers of Puget Sound Energy will get a price cut on natural gas for the first time in five years as the company cuts its rate by 13 percent starting October 1st.

The cut, approved today by the Washington Utilities and Transportation Commission, comes as the region prepares for the prime heating season. Its effect will be widely felt, since 44 percent of Seattle-Bellevue-Everett metro area homes burn natural gas for heat.

The natural gas bill for a typical residential customer will drop by $11.27 to $82.12 a month, according to the WUTC. However, given the volatility of energy markets, nothing guarantees prices won't come back up when the utility revises its costs next year.

"I'm pleased that ratepayers will benefit from lower natural gas prices. I only wish I could guarantee that these wholesale prices will stay low in the future," said WUTC Commissioner Pat Oshie in a statement.

The rate cut comes in the wake of lower wholesale gas prices in recent months, caused by several factors.

Relatively mild summer temperatures meant low air conditioning loads; there were no major supply disruptions such as those caused by hurricanes Rita and Katrina in 2005; there were record imports of liquiefied natural gas imports and more production in the Gulf of Mexico and the Rockies. The Energy Information Administration expects natural gas production in the U.S. to increase by 0.7 percent in 2007 and 1.3 percent in 2008.

Puget Sound Energy, Washington state's largest energy utility, is required to pass these savings on to customers. The company, like other state-regulated utilities, adjusts its rates once a year to balance its costs with the prices it charges.

Ángel González: 206-515-5644 or agonzalez@seattletimes.com