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What to Expect this Winter | Natural Gas

November 01, 2021:
With a significant increase in the cost of natural gas, driven by escalated global demand and shortages in U.S. supply, we are asking customers to prepare for higher-than-normal gas bills this winter. During the pandemic, the price of natural gas hit a 10-year low and recently, the market price doubled compared to last winter. This market shift will impact natural gas rates.

If you are a natural gas customer, your HG&E gas rate is made up of three components, which include:
  • Customer Charge: Fixed monthly amount that covers maintenance and repair of meters and other customer-related expenses.
  • Distribution Charge: Covers the cost of transporting natural gas through HG&E's distribution system, including the necessary measures related to safety and reliability.
  • Purchased Gas Adjustment (PGA): Reflects the cost of purchasing natural gas and transporting it to HG&E's distribution system. The PGA is driven by market conditions and is adjusted as needed throughout the year.
Here is what to expect this winter.
  • A planned 3% adjustment to the distribution charge is expected to take effect in January 2022 in order to keep pace with the cost of services provided.
  • Compared to November 2020, expect the PGA component of your bill to increase significantly. This increase is driven by market conditions outside of HG&E's control.
  • With these changes, the average residential heating customer using 185 ccf of gas per month during the winter will see a bill increase of approximately $51 (24%) compared to last winter.
WAYS TO OFFSET THE INCREASE IN NATURAL GAS PRICES THIS WINTER

Manage your energy use and payments by taking advantage of HG&E's innovative energy efficiency programs, assistance, and rebates, including:

We know any increase to your bill is challenging and our team is here to help you get ready for the winter heating season ahead. Visit hged.com/save or contact Customer Service by calling (413) 536-9300 for additional intimation.
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