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Potato_Octopi t1_j7iqrj7 wrote

Reply to comment by paranoia2mb in Department of Public Utilities Approves Reductions to Winter Gas Supply Rates by wkomorow

I'd assume more reductions later. Prices crashed for Feb and onward delivery.

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wkomorow OP t1_j7ix5s7 wrote

Could be, from the reporting:

Under federal law, natural gas is sold in a competitive market. The Massachusetts gas distribution companies are required to purchase gas on their customers' behalf at the market price and pass that cost on to their customers without profit to the companies. The DPU requires all gas distribution companies to revise their gas supply rates, known as the cost of gas adjustment factor, or "GAF", whenever the companies will materially over- or under-collect costs from customers. Due to declining natural gas prices in the competitive market, the companies will decrease their GAF for gas consumed between Feb. 1, 2023, and April 30, 2023.

Depending on the utility, this is actually a 10-15% gas supply rate reduction. 5% drop in total bill expected. Like electricity, distribution charges are often higher than production charges, and these will not go down.

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Potato_Octopi t1_j7iy0re wrote

The gas part should fall more. Dec gas was like 6.79, vs Feb at like 3.10. March is looking lower.

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paranoia2mb t1_j7kpntw wrote

I agree, I don’t know how gas can crash by what looks like well over 50% but then we only get a 10-15% reduction? We are being taken to the cleaners for the remainder of the heating season is what it feels like.

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