Public Service Commission warns of rising gas prices

Posted 11/10/22

Natural gas users can expect to pay more for the utility as the days get colder, and not just because they may be using more of it as the heaters get taxed. Both the Wyoming Public Service Commission …

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Public Service Commission warns of rising gas prices

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Natural gas users can expect to pay more for the utility as the days get colder, and not just because they may be using more of it as the heaters get taxed. Both the Wyoming Public Service Commission and Montana-Dakota Utilities, a natural gas provider serving Powell, warned customers recently that customers can expect a roughly 28% increase in cost. 

MDU customers can expect to pay an average of $30 more per month during the 2022-2023 heating season (November-March), according to an update by the utility. 

The cost of natural gas is a straight passthrough to Montana-Dakota’s customers, and MDU does not earn a profit on those costs.

“Montana-Dakota understands prices have increased for many day-to-day necessities because of inflation; securing a reliable source of natural gas for our customers is facing the same higher price challenges,” the utility said in a release. “The company goes through a robust process to secure an adequate supply, using different sources and methods to mitigate price increases as much as possible.

“Natural gas prices are determined by numerous market factors, such as supply and demand, weather, imports and exports, underground storage levels and natural gas production.”

Montana-Dakota customers typically use 70 dekatherms of natural gas over the heating season. The expected increase in natural gas costs is about $150 over the five months for an average residential customer, or $30 per month. The price outlook is based on a 30-year weather average.

If the winter season is 10% colder than average, the winter heating season cost would be about $200, or $40 per month; conversely, if it’s 10% warmer than average, residential customers would pay, on average, about $80 more for the heating season, or $16 per month.

Natural gas prices have been trending upward, with current average commodity prices in Wyoming about 60% higher than last winter. The increases vary by individual utility company, from as low as 24% to as high as 124%. The upward trend in gas prices translates to bigger gas bills — approximately 28% more on average. 

The cost of the natural gas itself, is set by market forces that neither the Public Service Commission or gas utility can control. Foreign and domestic supply and demand, production levels, the amount of gas in storage and weather may drive commodity prices up, resulting in higher customer bills.

The PSC provides tips on conservation measures to help reduce natural gas usage to make homes more energy efficient. Affordable conservation measures include checking and changing your furnace filter regularly, making sure your air ducts are clean and free of obstructions, caulking and weather-stripping doors and windows, lowering your thermostat, and insulating electrical outlets and light switches. Other conservation measures include insulating your home, replacing old appliances and equipment with energy-efficient units, having your furnace inspected and tuned up if necessary, and installation of a programmable thermostat. Many utilities have programs designed to assist their customers with conservation measures. Customers should contact their utility to inquire about available assistance.

If you’re having difficulty paying your utility bill, there are several programs available that provide financial assistance.

Visit www.lieapwyo.org to learn if you qualify for low-income energy, weatherization, and water assistance.

Visit dfs.wyo.gov to learn if you qualify for assistance with utility bills through the Homeowner Assistance Fund (HAF) or through the Emergency Rental Assistance Program (ERAP). ERAP program applications will stop and letters of intent are due Nov. 10, 2022, in anticipation of funds running out by early spring so apply quickly if you believe you will have a need.

Wyoming 2-1-1 (wy211.communityos.org or dial “211”) maintains a comprehensive database of community resources.

Your utility company may also offer payment plans, budget billing, and other measures.

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