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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.

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 or contact Customer Service by calling (413) 536-9300 for additional intimation.
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