Your gas bill is going up in part because demand from natural gas-fired electric plants has driven up the price.
It’s still cheap compared to before 2005 but the cost adjustment price hike approved by the Idaho Public Utilities Commission is the first since 2008. Intermountain Gas serves 320,000 customers throughout southern Idaho.
For a customer who uses natural gas for home and water heating the increase is about $1.85 per month.
Customers who use natural gas for space heating only the average monthly increase is 68 cents. For commercial customers, the increase is about $14.18 per month, the PUC said in a press release.
The rate hike comes from the annual Purchased Gas Cost Adjustment, based on the changing costs of natural gas supply, transportation and storage. Intermountain Gas earnings do not increase because of the cost adjustment.
Last year the price dropped 7.1 percent. The big drop came in 2009 at 22 percent.
Northwest Pipeline raised its price to transport the gas and the uptick in the economy an increase demand drove the gas price up. The huge increase in supply from the tapping of shale gas reserves with fracking is still keeping the price down.
Over the long term, the big uncertainty is if the U.S. is going to allow the natural gas industry to export the nation’s natural gas bounty. The gas industry says it will increase jobs and drilling while critics say by keeping prices low here, it can attract manufacturers back to our shores.