By Jim Donovan: Philadelphia Gas Works (PGW) today announced that it will decrease what residential customers pay for natural gas. The average residential heating customer will pay about $14.69 less per month for the next three months.

The new cost for gas will change from $1.60 per Ccf to $1.50 per Ccf. Residential heating customers will pay $1.50 per one hundred cubic feet (Ccf) of natural gas beginning December 1, 2010.

The Low Income Home Energy Assistance Program, or LIHEAP, is now available, but funds are limited so customers should apply now before the money is gone.

The company anticipates that its rates should remain stable through the spring, based on current market projections, producing savings for all of the company’s customers compared to recent years. PGW’s residential natural gas rates are made up of two main components: a supply charge and delivery charge:

The supply charge is the part of the bill that reflects the amount of gas used by the customer. This charge is what PGW pays for the gas and is passed on to the customer without markup. The delivery charge includes the cost of delivering natural gas to the customer’s meter, distribution system maintenance and customer billing costs, as well as weather adjustments.

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