PUC Winter Natural Gas Reliability Reports - Households Using Natural Gas Will See A Significant Increase In Heating Bills

On December 5, the Public Utility Commission released 2022 Winter Reliability Overview Reports from the state’s major natural gas distribution companies (NGDCs), along with a related Readiness Report from the Energy Association of Pennsylvania (EAP).

According to projections provided by EAP, home heating costs are expected to rise significantly over the winter, driven by an estimated 5% increase in consumption (for households that use natural gas as their primary heating fuel), along with a 28% rise in natural gas prices compared to last winter. 

[Note: The Independent Fiscal Office released a report on natural gas production in Pennsylvania which found the average Pennsylvania hub price for natural gas increased by 94.7% over the last year.  Read more here.] 

Additionally, all of Pennsylvania’s major NGDCs indicated that they have sufficient supplies and procedures in place to ensure reliable natural gas service this winter.

[Note: Each of the reliability reports presented information as of November 1.  They did not include an analysis of the impact of losing an estimated 1 billion cubic feet of natural gas from the Rager Mountain Gas Storage Area in Cambria County between November 6 -20.  Read more here.]

The Commission also continues to encourage consumers to #CallUtilitiesNow to explore affordability options to help remain connected and safe during the coming cold weather months.

Natural Gas Reliability Overview Reports

The reliability overview reports provide insights regarding preparations for conditions that may affect service reliability, supply, and prices for the winter months, including topics such as system readiness; employee safety/readiness; communications outreach; gas supply and planning; and natural gas demand for electric generators.

The winter readiness overviews can be viewed using the following links:

-- Columbia Gas of PA

-- National Fuel Gas

-- PECO Energy

-- Peoples Natural Gas & Peoples Gas

-- Philadelphia Gas Works

-- UGI Utilities – Gas Division

-- Energy Association of PA

The full reports are also posted on the “Reliability” section of the PUC website.

Consumer Preparedness - #CallUtilitiesNow 

In addition to utility readiness, the Commission continues to encourage consumers to prepare for the coming winter – underscoring the importance of consumers, businesses and utilities continuing to work together during this unprecedented time.

“As Pennsylvania consumers, businesses, and public utilities move into another winter heating season, our neighbors and our communities face the continuing pressures of volatile energy prices, inflation impacting other expenses, and economic uncertainty,” the PUC noted in a recent letter to utility CEOs. 

To help address those concerns, “the PUC continues to encourage residents and businesses to #CallUtilitiesNow to explore various utility assistance programs and other options to help manage their energy use and keep bills affordable.”

The PUC strongly encourages concerned or struggling households to #CallUtilitiesNow to explore all the available options. 

Public utilities are the first and most direct mechanisms to link struggling households with much-needed assistance.

Utilities understand the assistance programs available in their communities for income-qualified consumers – including utility-run Customer Assistance Programs (CAP), national programs like the Low Income Home Energy Assistance Program (LIHEAP), and various hardship fund programs operated by utilities and non-profit organizations. 

Utilities also can help enroll consumers in assistance programs, guide them to other available resources and discuss new payment plan options to address overdue balances and help consumers move forward.

Related Articles:

-- PUC Alerts Consumers Utility Natural Gas Costs Will Be Going Up By As Much As 128%, Electric Costs Will Be Going Up By As Much As 34%; Both Driven By Cost Of Natural Gas On World Markets  [PaEN]

-- Independent Fiscal Office Reports 3rd Quarter PA Natural Gas Production Dropped For 3rd Consecutive Quarter Over 2021; PA Hub Natural Gas Price Increased 94.7% Over Last Year  [PaEN] 

-- Marcellus Drilling News: 3 Conventional Oil & Gas Industry Groups File Lawsuit To Block Rule Limiting VOC/Methane Emissions From Conventional Oil & Gas Facilities [PaEN]

-- Sign Petition Urging Governor-Elect Shapiro To Prioritize Banning Roading Dumping Of Conventional Drilling Wastewater  [PaEN]

-- UPDATED: After 14 Days, Efforts To Stop A Natural Gas Leak At A Cambria County Underground Gas Storage Area Have Apparently Been Successful  [PaEN]

NewsClips:

-- Canary Media Guest Essay: LNG Natural Gas Exports Hurt Americans By Driving Home Heating Costs To Record Highs

-- WPSU: Heating Prices Could Bring Sticker Shock This Winter; Columbia Gas Price Takes Especially Dramatic Jump - 128%

-- WESA: Duquesne Light Customers To See Some Electric Rates Increase By 20% This Winter [Due To Cost Of Natural Gas-Fired Generation]

-- WNEP: Another Rate Increase For UGI Natural Gas Customers

-- Wilkes-Barre Times: UGI To Pass On Higher Natural Gas Cost To Customers

-- The Center Square - Anthony Hennen: PA Natural Gas Price Up 95%; New Shale Gas Wells Up 42%

-- Pittsburgh Business Times: Publicly Traded Shale Gas Producers Haven’t Increased Pace Of Drilling In Spite Of Higher Prices; New Report Says Privately Owned Drillers Are

-- Baker Hughes PA Natural Gas Drilling Rig Count Same As Last Week - 22

-- Pittsburgh Business Times: EQT’s Toby Rice Calls For ‘Unleashing LNG’ Natural Gas To Solve Climate Problem, End Poverty Other Societal Ills

-- Financial Times: Europe Cuts Natural Gas Demand By A Quarter To Shed Reliance On Russia

[Posted: December 5, 2022]  PA Environment Digest