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A Publication of Guidry News Service |
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A Publication of Guidry News Service |
Texas Gas Service has warned its customers in Southeast Texas that wholesale natural gas prices jumped in December, sparked by the arrival of below-normal temperatures in the eastern half of the country. As a result, TGS customers will be paying more for gas in their January bills. Customers in Galveston will be paying $0.78323 per Ccf (hundred cubic feet of gas), a 16 percent increase when compared to January 2003. Customers in Port Arthur, Groves, Nederland, and Port Neches will be paying $0.63802 per Ccf, a 10 percent increase from the amount customers paid for gas in January 2003. Texas Gas Service purchases gas from a variety of
suppliers and pays market price for gas with no mark-up to its
customers.
The remainder of the bill is comprised of rates and
fees set by the cities and regulatory bodies that regulate TGS. "Some
of the jump in the price of natural gas can be explained by
the below-normal cold weather in the heavily populated
northeast at the beginning of the heating season," said a
news release.
"Cold weather induced fears in traders about the
adequacy of supplies in the event of an unusually cold winter.
In addition, the economic recovery has increased
industrial demand, squeezing the supply cushion." Texas Gas is advising customers to be prepared for volatility and higher utility bills. "An extended cold snap or other unforeseen events could cause the price of natural gas and electricity to increase," the release continues. "Therefore, TGS is urging its customers to be prepared for higher prices, to take steps now to weatherproof their homes and to conserve energy. In addition, TGS recommends that customers enroll in the average bill calculation (ABC) plan." With
the ABC Plan, customers will know in advance what their winter
bills will be. Customers should call (800) 700-2443 to enroll.
For conservation tips or to enroll in the ABC Plan on-line,
customers can log on to the TGS web site at www.txgas.com.
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