Home Page >
Customer Service >
Frequently Asked Questions - About Natural Gas Prices
You may have heard natural gas prices will be higher this year than ever.
You may have also heard natural gas prices are dropping. Wisconsin Public Service
wants to help you understand what to expect for winter heating bills and what
you can do to manage your bills.
- What is the outlook for natural gas prices this winter?
- Natural gas customers are likely to face higher energy bills this winter.
During the first half of 2008, natural gas prices were very high. Some news media reported home heating bills would be much higher than in previous years. In late July, natural gas prices started to fall. That's good news. However, because natural gas utilities buy winter gas supplies throughout the year, those recent lower prices will be blended with higher prices paid earlier in the year.
If this winter is colder than last winter that will affect heating bills as well. Customers will use more gas to keep their homes warm.
Back to Top
- What makes natural gas prices rise?
- Natural gas prices rise for the same reason the prices of other goods tend to rise. It's called "supply and demand." The amount of natural gas our country produces and uses is closely linked to the price of the gas. If the supply or demand for natural gas changes, a change in the price of the gas follows. Sometimes, even news about the supply of natural gas can cause its price to change.
Over the past several years, the price of natural gas has risen steadily. That's because the use of natural gas has increased, but the supply hasn't increased at the same rate. Natural gas is popular, and its use is growing. It's efficient, and its use has a low environmental impact. Homeowners enjoy the comfort and warmth it provides. And because it's produced in our own country, it contributes to U.S. energy independence.
In addition, natural gas prices can rise due to changes in weather. Hurricanes in production areas or colder-than-normal winter weather can create short-term increases in the demand for gas.
Despite rising prices, natural gas is still a sensible value. It's important to remember that the prices of other fuels have risen, too. Many companies and organizations are working to make more natural gas available for the future, to keep costs affordable.
Back to Top
- What is Wisconsin Public Service doing to keep natural gas costs down?
- We know high costs are difficult for our customers. To help manage the effect of higher natural gas prices on our customers, we:
- Purchase gas at the lowest possible price for our customers in the current natural gas market.
- Have contracts for natural gas, which lock in a price calculation for future months. This helps avoid price spikes caused by supply problems or increased gas use during extremely cold weather.
- Direct charge only for the delivery of natural gas. Our customers pay exactly what we pay for natural gas. We charge only to deliver the gas over our pipeline system, and we have been able to keep that charge low. In fact, the cost of gas delivery has risen at a rate slower than the rate of inflation.
- Offer billing and payment options that can help. We offer a variety of billing and payment options. One example is Budget Billing, which spreads your winter heating costs out over several months.
- Show customers how to use less energy. Our Energy-Saving Tools & Ideas can help you reduce your energy use.
- Provide assistance to those having difficulty. If you or someone you know is having trouble paying heating bills, we can help. We can make payment arrangements or connect customers with state or federal assistance programs. In addition, our employees volunteer in the community, helping many families and groups with basic needs.
Back to Top
- What can you do to manage this winter's heating bills?
- The best way is to use energy wisely. Before winter, caulk around windows, install a programmable thermostat or add insulation. During winter, lower your thermostat at night and when you're away. You can learn more about your energy bill and what you can do to manage costs with All About My Bill and Energy-Saving Tools & Ideas.
Find a payment plan that works for you. Wisconsin Public Service offers a variety of billing & payment options. With Budget Billing, you pay an average amount monthly instead of seasonal highs and lows. If you're already a Budget Billing customer, this winter's natural gas costs are already being factored into your monthly budget amount.
Ask for help with heating bills. Help is available for customers who are having difficulty paying their heating bills. Find out if you're eligible for state or federal heating assistance.
Look for the STAR. If you're thinking about buying a new natural gas appliance, look for the ENERGY STAR® label. With ENERGY STAR®, you'll know you're buying an energy-saving appliance. You can also visit www.focusonenergy.com to find out about possible rebates and other programs.
Back to Top
