September 2022 Board Update
Semi – Annual Fuel Cost Adjustments Are Being Impacted By Several Factors
Over the last few years, except for the February 2021 event, natural gas market prices have been at levels not seen since 2006 and 2008. The factors influencing the pricing volatility are overseas demand and the Ukrainian war, explosion damage to the Freeport LNG facility in Texas, and unexpected demand for power production this past summer because of extreme heat and drought conditions.
The Electric Fuel Adjustment Clause, in use since 1953, includes costs for all fuels, purchased energy, and all requirements associated with regulations, for electric demand, and is done every six-months to true-up projected fuel costs with the actual cost. Residential electric customers should expect an approximate increase of 15 percent more than the previous six months. For an average electric customer using 844 kWh, that increase is approximately $13 per month with an electric portion of the bill at approximately $97.
When compared to the last heating season, October 2021 through March 2022, natural gas customers will likely see increased costs on the natural gas portion of their bill. Market pricing volatility is again the primary factor but also a milder heating season during 2021 – 2022, resulting in less use of natural gas. Weather conditions are forecast to be “average” or possibly colder during the 2022 – 2023 heating season which would result in more usage of natural gas for heating. During the upcoming heating season, October through March, depending on individual customer usage, an increase of approximately $40 per month is possible which would raise the average natural gas bill this heating season to $200 per month. The average natural gas bill last heating season was approximately $160. These routine adjustments, up or down, occur every six months.
Tune-up Your Heating System
With the high cost of natural gas this year, CU is offering a rebate to help with the cost of tuning-up your heating system to ensure it’s operating efficiently. The Tune-Up Rebate is only available through December 31. Other rebates and cost saving suggestions are available on the Ways to Save section of our website and the CU social media sites.
Register For My Account
Did you know you can monitor your utility usage? Register your account and use your computer or the My Account app, to stay connected with your usage and receive other information. My Account is available for Apple or Android devices.