Customers to see 3% cut in cost of city gas

Published 11:34 am Friday, October 19, 2012

The City of Vicksburg’s natural gas rate is being reduced by 5 percent beginning Nov. 1, but the 8,500 customers will see a reduction in bills of only about 3 percent.

“The total gas bill to the customer includes the price the city pays for gas, plus the overhead, or the cost of operation and moving the gas through the system,” said city Information Technology Director Billy Gordon.

The 5 percent reduction does not carry over to the overhead and operation costs, he said.

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The Vicksburg Board of Mayor and Aldermen voted unanimously Monday to lower the gas rate charged by the city’s Water and Gas Administration beginning Nov. 1.

Monthly bills reflect the total cost of gas used. The price reduction will appear on the bill’s next line as a negative figure, and will be deducted from the total gas bill.

That means a $100 bill would drop to $97.

Howard Randolph, president of Utility Management Corp., which manages gas purchases for the city, said Monday the rate can be reduced because gas bought for November, December and January cost less than previous months.

The average price for those three months, he said, was about $3.35 per 1,000 cubic feet.

Prices for gas Thursday on the futures market were $4.03 for February and $3.98 for March.