Did the price of natural gas nearly quadruple in the last month?

Factual Questions
1

I just paid my gas bill ($124 for 132ccf) and noticed that it was about six times my last gas bill ($20 for 79ccf). Calculating, I get that the price of gas was about four times higher. I don’t remember hearing anything about that and after googling, I didn’t notice huge swings in the price of gas. Did it really go from 25 cents to 94 cents per ccf (which I assume is 100 cubic feet at 3 psi)?

Thanks,
Rob

2

http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp

From a low in November to a high in early January there was an approximate 100% increase in near-month futures contracts for natural gas. Certainly not a quadrupling.

You may want to check that A) you have not exceeded your baseline usage, in which case you may see a higher rate for over-base usage as well as B) that there is no winter surcharge or the like and C) that your customer charge has not increased (not sure if you pay this-- where I’m at we pay this whether we actually use any gas or not) and of course D) that there was no standard increase in pricing that may apply.

You might also be paying more taxes as well, utilities taxes are popular revenue generation schemes for local and state municipalities,

3

It is also possible that a previous bill was based on an estimate, and you got a “catch up” bill when they actually got around to reading the meter.

4

That might make his bills vary significantly from month to month, but that wouldn’t change the effective price per ccf.

My gas bills have been in the ~$1/ccf range for the past several so at least in my neck of the woods there hasn’t been a major change. Your previous bill seems rather cheap (possibly below cost) compared to the numbers in IAmNotSpartacus’s link. Perhaps you had a credit last month for a previous overpayment or such? Your bills should list the actual price per therm or ccf charged.

5

Also, he might be on a level payment plan. Southern California Edison does meter readings, but let’s you pay the same amount each month. At the end of the year, you either pay the difference or get credit for the next month(s).

6

Our gas is provided by Texas Gas Service. BTW, I was paid up and I don’t pay the same amount every month. I think it may have been the case that we exceeded our base rate, but I think it had more to do with price fluctuations. I was just curious if it was really high and outside given what I paid last month.

Thanks,
Rob

7

Our natural gas price was adjusted downward 22 percent last November, and that was on top of a huge one-off rebate the previous June. I’m currently paying $0.59654 per Therm.

8

I wish. They’re drilling for it under my house right now …