MidAmerican warns customers of high heating bills this winter amid high natural gas prices
DES MOINES, Iowa (KCRG) - MidAmerican Energy is preparing its customer for high heating bills this winter due to higher natural gas prices.
The company said its customers can expect their total bill to increase by 46-96 percent this winter.
In a press release, the company said natural gas market prices have more than doubled from this time last year. The company attributes the higher prices to increased global demand amid limited production and inventory.
“We’re not seeing signs of supply challenges this winter, but we do expect to see higher customer bills because of higher commodity prices,” Peggi Allenback, MidAmerican vice president of market operations and supply, said. “We don’t mark up what we pay for natural gas, rather the cost of the commodity is a straight pass-through to customers. We purchase a portion of gas in advance at the best possible price, and in warmer months, when gas is generally cheaper, we store it for use in winter to help protect our customers financially. Despite these efforts, though, we want our customers to understand that natural gas bills will still be higher this heating season.”
Impacts to customer bills will vary based on customer usage.
Experts expect more people to look toward LIHEAP, or Iowa’s Low-Income Energy Assistance Program, for assistance.
The season in which most customers use heating runs from November through March.
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