Natural gas and peak electricity demand
Posted: Wed Jan 22, 2014 1:23 pm
I hadn't thought of this but it makes sense.
Ed, you may want to look at the cost per BTU as well as the degree days on your last bill, and compare that way. Otherwise you aren't considering all the variables.The newest wave of cold air helped to deplete fuel supplies and send prices for propane and natural gas to record highs. Higher natural gas prices also are leading to sharply higher wholesale electricity prices as power utilities snap up gas at almost any price to run power plants to meet higher-than-normal winter demand.
Propane users will get pinched the most. Those who find themselves suddenly needing to fill their tanks could be paying $100 to $200 more per fill-up than a month ago. Homeowners who use natural gas and electricity will see higher heating bills because they'll use more fuel. But prices won't rise dramatically because utilities buy only a small portion of the fuel at the elevated prices.