SPRINGFIELD, Missouri (KY3) – Cold weather conditions have placed a high demand on the supply of natural gas in the Springfield region, according to City Utilities.
According to City Utilities, natural gas wells are freezing in the southwest, which is causing limited supply. In response, suppliers are expected to raise prices for the remaining supplies of natural gas.
“This is an unprecedented weather event that is affecting not only all of our customers, but also customers of natural gas utilities across the Midwest,” said Gary Gibson, General Manager and CEO, City Utilities of Springfield, “ our priority with all the services we offer is to keep our customers safe and secure that we are doing everything we can during this severe winter event. “
Costs rose from a market price of $ 3 per decadent to nearly $ 400 per decadent, City Utilities said on Sunday in a press release.
Although CU buys less than 25% of its supply of natural gas from the market, this situation is likely to have an impact on future utility bills. The rest of the natural gas for City Utilities’ customers comes from fixed price and storage contracts, which are purchased outside the season.
In preparation for the cold climate, City Utilities has entered into a natural gas reduction agreement with several commercial and industrial customers who have the ability to exchange natural gas for an alternative fuel source. This option immediately redirects the supply to residential and other commercial customers and will be in effect until 9am on Tuesday, but can be extended.
In addition, City Utilities activated the Natural Gas Peak Shaving system, which combines a supply of propane and air and is injected into the natural gas transmission system to meet this peak demand. This will be the first time that this system will be used and put into practice for such an event.
“We are asking our community to work together, as we have done so many times in the past, to overcome this peak period with as little impact as possible,” said Gibson. “We have already seen companies offering to reduce their use and we are asking everyone to do the same.”
There are a few steps you can take to help reduce the impact of this climate on your electricity bill:
• Lower the thermostat at least 2 degrees from its normal setting. 68 degrees is the suggested average setting for winter.
• Limit the use of natural gas fireplaces.
• Limit the use of plug-in electric heaters.
• Reduce your water heater’s temperature setting.
• Look for other opportunities in your home to decrease the use of electricity and natural gas during this short period
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