AOG gets approval to lower summer gas rates
by March 31, 2009 11:40 am 91 views
The Arkansas Public Service Commission has approved a request by Arkansas-Oklahoma Gas Corp. to lower rates beginning April 1.
Fort Smith-based AOG estimated the rate cut would lower the average residential summer natural gas bill by $1.74, and the average small commercial summer gas bill by $11.93.
AOG on Mar. 26 asked approval from the PSC to lower its commodity charge to reflect the significant decline in natural gas prices. By law, AOG is not allowed to make money on natural gas as a commodity; rather, the utility makes money on the transportation and ancillary services related to providing natural gas.
Within the past year, the price of natural gas has fallen from above $10 per mmBtu to at or below $4. According to the American Gas Association, natural gas prices have not been this low since November 2002.
The approval was given Mar. 30 by Commissioners Paul Suskie, Colette Honorable and Olan Reeves.