(The following press release from the New York State Public Service 
Commission was received by e-mail and was reformatted. The sender verified the 
Public Service Commission
Garry A. Brown, Chairman 
Three Empire State Plaza, Albany, NY 12223 
—       Natural Gas Commodity Prices Expected to be Lower Than Last Year —  
Albany, NY – 10/18/12 – Based on an annual review of local utilities’ 
winter preparedness, the New York State Public Service Commission 
(Commission) today announced that utilities providing natural gas service 
in the state have adequate supplies, delivery capacity, and storage 
inventory to satisfy customer demand under severe winter conditions.  In 
addition to having necessary supplies of natural gas, commodity prices are 
expected to be lower this heating season.  
“Ensuring a reliable gas supply to New York’s ratepayers continues to be 
of paramount concern to the Commission,” said Chairman Garry Brown. “The 
utilities serving New York have adequate supply and inventory to satisfy 
expected demand this winter.  Meanwhile, the commodity cost for natural 
gas is anticipated to be lower than last year, based on current market 
As part of the winter readiness review, staff of the Department of Public 
Service provided a report to the Commission regarding the arrangements 
utilities have made to obtain adequate commodity supply to meet expected 
customer demands under severe winter conditions.  Additionally, staff 
reviewed the utilities’ compliance with Commission policy regarding gas 
purchasing practices.  Special attention was given by staff to the methods 
utilized by the utilities for gas price risk management efforts, including 
the use of hedges (i.e., storage gas and fixed price contracts) and 
financial incentives, such as futures and options. 
The Commission’s assessment of natural gas supplies and prices is based on 
staff’s monitoring of utilities’ actions to prepare for the winter. 
Throughout the winter season, staff will monitor issues that could 
potentially affect the utilities’ operations and their customers, such as 
weather and heating degree day data; storage inventory management; 
interstate pipeline operational issues; operational flow orders; utility 
operation issues; gas price levels and fluctuations; and customer 
interruptions. Staff will report to the Commission if a problem develops, 
or if action is warranted. 
As of October 1, 2012, the price of flowing gas is projected by the New 
York Mercantile Exchange (NYMEX) to be higher than last year. However, 
when combined with a lower cost of gas in storage and a lower price of 
hedged gas supply, this year’s total commodity cost on average is expected 
to be 12 percent lower than last year. As the winter progresses, prices 
for November through March could increase in response to changes in market 
conditions, such as weather and gas availability. 
In New York, there are about 3.9 million natural gas heating customers. 
About half of the households in the state use natural gas for heating 
purposes and residential customers constitute the majority of natural gas 
customers. Nearly 90 percent of the natural gas used in New York is 
imported. The Commission regulates natural gas delivery rates and not the 
price of natural gas itself, often referred to as the commodity price. 
Natural gas prices are determined by national and international markets, 
not the Commission or New York utilities. 
For information on how to lower energy costs this winter, call the 
Commission’s information line at 1-888-Ask-PSC1 (1-888-275-7721), or visit 
the Commission’s Web site at www.AskPSC.com.  
The report today, when issued, may be obtained by going to the Commission 
Documents section of the Commission’s Web site at www.dps.ny.gov and 
entering Case Number 12-G-0206 in the input box labeled "Search for 
Case/Matter Number".  Many libraries offer free Internet access. 
Commission orders may also be obtained from the Commission’s Files Office, 
14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).  
Further Details: James Denn
James.denn@dps.ny.gov | 518.474.7080
http://twitter.com/NYSDPS 12075/12-G-0206