MidAmerican Energy: Expect 46-96% increase on natural gas bills

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KCCI Des Moines 12 October, 2021 - 12:24pm 5 views

MidAmerican Energy: Expect 46-96% increase on natural gas bills

FOX 6 Milwaukee 12 October, 2021 - 10:09am

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MidAmerican Energy on Tuesday said it is telling Iowa customers that higher natural gas prices will impact their monthly heating bills this winter.

The company said natural gas market prices have more than doubled from this time last year. MidAmerican said increased global demand coupled with both limited production and inventory have heavily increased the cost for the company to purchase natural gas.

MidAmerican said based on the market prices for natural gas over the last month, customers in MidAmerican’s service area can expect their total bills to increase by 46% to 96%.

“We’re not seeing signs of supply challenges this winter, but we do expect to see higher customer bills because of higher commodity prices,” Peggi Allenback, MidAmerican vice president of market operations and supply, said in a news release. “We don’t mark up what we pay for natural gas, rather the cost of the commodity is a straight pass-through to customers. We purchase a portion of gas in advance at the best possible price, and in warmer months, when gas is generally cheaper, we store it for use in winter to help protect our customers financially. Despite these efforts, though, we want our customers to understand that natural gas bills will still be higher this heating season.”

According to MidAmerican, the higher market prices will affect a customer’s gas supply charge, which is the cost of the natural gas the customer uses. Market price fluctuations do not affect rates, which include fixed administrative costs, as well as costs associated with maintaining infrastructure and ensuring safety.

The company said actual bill impacts will vary by customer due to usage as temperatures get colder and market prices continue to fluctuate.

MidAmerican offers budget billing to customers and offers tips on how to save energy.

The Iowa Energy Office recommends turning thermostats back 7 to 10 degrees for eight hours per day for an annual savings of 10%.

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