ADVERTISEMENT [ how to become an advertiser ]

CLARKSBURG, W. Va., July 30 /PRNewswire-FirstCall/ -- Dominion Hope, a subsidiary of Dominion (NYSE: D), has proposed a 3 percent reduction in its residential rates, effective Nov. 1. The rates would reduce the average monthly bill of the residential customer who uses 73 thousand cubic feet (mcf) per year about $2, from about $53 to $51 per month.

Most of the reduction was caused by lower actual costs for the prior winter and lower projected natural gas costs for the coming winter. All rates must be approved by the West Virginia Public Service Commission.

Dominion Hope does not make a profit on the natural gas it purchases for its customers. That cost is passed directly to the customers. The company is required by law to buy the most reliable gas supply at the lowest available cost.

Natural gas market prices fluctuate depending on supply and demand changes. Current natural gas market prices are lower because of new supply sources and a decline in demand.

Dominion Hope purchases most of its natural gas from local West Virginia producers, reducing the need to pay for long-distance pipeline charges. The company also shops for much of its natural gas in the spring and summer, when prices are generally less expensive, and injects it into underground natural gas storage. Much of the gas that is provided in the winter comes out of storage.

Dominion Hope serves about 115,000 customers in West Virginia. It is a subsidiary of Dominion, one of the nation's largest producers of energy with a portfolio of more than 27,600 megawatts of generation. Dominion serves retail energy customers in 12 states. For more information about Dominion, visit the company's Web site at http://www.dom.com.

SOURCE Dominion Hope