Smith seeks investigation of natural gas price spikes during storm
It did not give an estimate of the impact on the average home heating consumer. However, Xcel Energy, the state’s second largest gas concessionaire, says it initially estimated the average residential consumer bill at around $ 50 in February. Now the estimate is much higher.
“With the recent increase in natural gas prices, we are preliminarily thinking that we incur about $ 300 per residential customer,” Amy Liberkowski of Xcel Energy told PUC.
Price increases are largely due to a rare winter cold wave in the southern United States, while sub-zero temperatures were common in the north. However, Minnesota senator Tina Smith called for an investigation to ensure that natural gas suppliers were not involved in price increases during the winter.
PUC voted 5-0 to open a formal investigation to examine the impact of the national price hike on state customers and gas utilities.
It is likely, given the seriousness of the problem, state and federal assistance could be needed, “said PUC President Katie Sieben, about the impact on residential customers.
In a press release after the meeting, the Minnesota Department of Commerce and PUC outlined the focus of the investigation.
“Although Minnesotans have reliable energy to keep the lights on and warm, the Commission found that some utilities had to buy gas at prices at least fifty times higher than the average between February 12 and 17. The formal investigation will examine the impact and look for ways to mitigate the impact on utility customers. “
Gas prices rise in Minnesota after extreme weather in Texas
Although Minnesota residents have huge price spikes, they are unlikely to appear in their accounts for several months, while PUC investigates what caused the increases.
At the hearing, regulated gas utilities, which serve most of Minnesota, reported that unexpected gas costs in mid-February will not appear in customers’ accounts immediately, but may be delayed by several months, pending PUC approval.
The Minnesota Attorney General’s Office is also monitoring price increases.
“While it is obviously never a good time to experience some kind of increase in commodity prices like this, having happened during a pandemic, it is probably the worst time when we could have something like this happening,” said Ian Dobson, from the attorney’s office- general. Leading utility companies say many customers are already late on paying their bills because of the pandemic.
Governor Tim Walz also gave his opinion on the matter on Tuesday.
“While we are just beginning to understand the implications of last week’s rise in natural gas prices, it is important that we work together and proactively to mitigate the impact on families and small businesses,” he said in a statement. “I am happy that the Public Service Commission is opening an investigation and my government, through the Department of Commerce, will defend Minnesota taxpayers during this process.”