As part of the proposed NPU budget for 2018, we have proposed an increase to our Purchased Gas Adjustment (PGA) charge. The rate, which has been a negative 3.5 cents per CCF for the past 24 months, will be increased to 6.5 cents per CCF effective July 1, 2017, if the proposed budget is approved.

For perspective, over the past several years, the PGA has been as high as $1.35 and as low as a negative 3.5 cents per CCF.

The PGA charge helps stabilize the wholesale cost of natural gas for our customers, which fluctuates significantly during the course of a year. As part of our ratemaking process, we forecast the cost of natural gas; sometimes the actual rate is more, sometimes less, based on the price of the commodity and activity on Wall Street.

Whatever the actual wholesale cost of the natural gas, the cost increase or decrease are shown as an adjustment on your bill. NPU does not make any money on the PGA, which is adjusted from time to time to prevent large price spikes in monthly bills. It is simply a reflection of the actual cost of the natural gas we have procured and will deliver to our customers.

If helpful, we would be happy to provide an estimated calculation based on your historic consumption. Please feel free to reach out to us for further information at any time.