Lower natural gas rates

Winston-Salem Journal: Piedmont Natural Gas’s request to lower its rates in the Carolinas for the 2011-12 winter heating season is the best holiday gift we’ve heard about. Surely the North Carolina Utilities Commission and the South Carolina Public Service Commission will grant the request.

“This puts money back into the pockets of consumers and back into the economy,” said Thomas Skains, the company’s chairman, president and chief executive.

Indeed.

Given the tight economic times and all the jobless people hurting out there, the reduction is sorely needed. For the typical residential customer, the Journal’s Richard Craver reported, the reduction would amount to $4 to $10 a month over the course of the winter heating season, which runs from November through March. For people struggling just to get by — and pay their utility bills — that’s helpful, and it’s certainly better than an increase. If approved, the lower rates would go into effect Jan. 1.

Natural-gas utilities have to pass along to customers any savings on wholesale costs. Several weeks ago, Piedmont estimated that its residential customers could see reductions in their 2011-12 winter bills of up to 10 percent compared with last year’s. The company said the forecast reflects the continuing national decline in the wholesale cost of natural gas. It also reflects a warmer-than-normal start to the winter heating season, as well as increased onshore production from shale gas.