Gas company announces higher rates this winter
|
Middle Tennessee Natural Gas CEO Less Enoch has said if the winter weather returns to normal, the average customer can expect a 6 percent increase in bills, far less than the 10 to 20 percent hike predicted across the state.
“Last winter was colder than normal,” Enoch said. “If weather returns to a more typical level, we expect the average Middle Tennessee Natural Gas customer is going to pay about $97 per month compared to $91 last year.”
Federal officials have warned natural gas users that tight supplies will likely drive up America’s home heating costs. Piedmont, the parent company of Nashville-based Nashville Gas Company, has said prices will increase between 10 to 20 percent because demand is outpacing available supplies.
Enoch said while the wholesale price of natural gas has increased, a successful purchasing strategy and increased storage should result in a “secure supply” for MTNG customers at a rate lower than others around the state.
“We continue to buy gas at the best price available,” he said. “We use long-term contracts, underground storage facilities, liquefied natural gas, and we have a 12-month average price mechanism to keep our customer bills as stable as we can. That’s how we deal with it.”
Increased storage is also part of the local strategy.
“We added two new storage contracts this year. Now we have nine. Prices have been fluctuating, but what storage does for us is allows us to take advantage of buying opportunities as well as maintain a secure supply,” Enoch said.
With supply and contracts made at as low a price as possible, Enoch said the remaining factors are weather and consumption patterns. He stressed consumers can equalize payments over 12 months with the district’s budget billing plan, winterize their homes to improve energy efficiency, and inspect and consider replacing old appliances with newer, higher efficiency models.
“MTNG is committed to providing quality natural gas service at competitive rates and in an safe, environmentally clean efficient manner,” Enoch added. “We think we’re set for the winter. If the weather is normal it will keep prices from bouncing around too much.”