Natural Gas Costs Rise From Usage

Winter’s chill is pushing up the tab for natural gas for Monticello’s utility customers, but they need not fear anything like the record surge that sent bills soaring in the relatively cold 2000-2001 heating season.

In a news release the city has assured customers that increases in their January-April bills will reflect only modest increases in wholesale prices. Most of the impact will come simply from higher usage, not the price of gas.
{{more}}
“With the heating season nearly half over wholesale prices are still substantially lower than during the peak of the winter of 2000-20001,” the release says. The statement was issued in the wake of media reports of gas prices rising by as much as 16 percent for customers of unregulated natural gas suppliers over the state.

Monticello, through its supplier, the Municipal Gas Authority of Georgia, uses natural gas price hedging—buying portions of anticipated load for peak demand winter months during less expensive off peak periods. Thus it hedges anticipated higher prices against the moderate risk that prices could fall below the “hedged” price obligated in off-peak purchases.

Monticello’s utility bills reflect monthly changes in gas and electricity prices at wholesale. Two years ago an unusually cold winter pushed demand to the limit of available supplies driving prices up. Some Monticello customers saw their winter bills soar to more than double the highest they had seen up to then.

A number of Monticello customers are on an equalized billing plan, and may not notice higher usage. But if usage exceeds that projected, any deficit must be made up when the bills are reconciled in midsummer.

For a list of money-saving tips,see the January 9 print edition of The Monticello News.