KY Natural Gas Prices Up Slightly This Season

Natural gas costs at the start of the 2014-2015 heating season will be only slightly higher than last year, the Kentucky Public Service Commission said today.

According to a press release, Kentucky customers can expect to pay about 4.58 percent more this November than last, based on consumption of 10,000 cubic feet of natural gas. The average total bill for 10,000 cubic feet – including base rates – is projected to be about $106.48. That is down more than $44 since November of 2008 - a decrease of 29 percent.

“Thanks to abundant supply, natural gas prices have remained fairly steady for several years,” PSC Chairman David Armstrong said. “That is despite rising demand as more natural gas is used to generate electricity and as the overall economy continues to improve.”

Armstrong said Weather – not price – is the dominant factor in determining the amount of energy that consumers use to heat their homes and thus the size of their heating bill.

“Many Kentuckians saw unusually high heating bills last winter due to the extended spell of extremely cold weather,” Armstrong said. “The weather forecasters tell us we are unlikely to experience another Polar Vortex in the coming months.”

Whatever the weather, the best weapon consumers have to manage their energy costs is to take steps to reduce consumption, he said.

“The best thing consumers can do is take advantage of the relatively low energy costs now and invest in permanent improvements, such as weatherization, that will provide insulation against higher energy costs in the future,” Armstrong said.

Natural gas costs this year are, on average, about 3.7 percent higher than a year ago. Two of Kentucky’s five large natural gas distribution companies have received a base rate increase in the last 12 months, which is why the overall average increase is higher than the average increase in the cost of gas itself.

About 44 percent of Kentuckians heat their homes with natural gas. For those who heat with propane (10 percent) or fuel oil (3 percent), prices are expected to be lower than last year, according to the U.S. Energy Information Administration.

The 39 percent of Kentuckians who use electric heat are likely to see somewhat higher bills on average this winter, in part because one of Kentucky’s largest electric utilities had a rate increase in the last year.

Although fuel prices have been relatively stable in recent years, many Kentuckians still struggle to pay their heating bills, Armstrong said. Heating assistance is available from local community action agencies and from utility companies, but funds are limited and sometimes run out during the heating season, he said.