RAPID CITY, S.D. – As cold weather comes to the region, a natural gas utility expects consumer bills to be higher this winter.
According to a natural price outlook issued by Montana-Dakota Utilities, customers could see a $30 per month increase over the 2021-22 season. That’s a total increase of about $150 for the average residential customer over the five-month winter season.
MDU says if the weather is 10% colder than average, customers could have about a $200, or $40 per month increase, or conversely, if it’s 10% warmer than average, customers would pay about $80 more for the season, or $16 per month.
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.
According to MDU spokesman Mark Hanson, natural gas has been pressured every since the pandemic. “Demand has increased more rapidly than what our supply was at the time and it has been that game of catch-up ever since.”
He noted reasons for the anticipated price increases range from weather patterns to global events. Heat records were set this past summer around the world. Natural gas used to generate electricity for cooling systems was in high demand which meant less gas has been stored for the winter heating months. In addition, the war Ukraine has disrupted energy supplies around the globe.
The 2021-22 heating season in the Black Hills runs November through March.
MDU adds that conserving your heat use can help lower your monthly bills, including installing a programmable thermostat, changing your furnace filters or winterizing your doors and windows.
