Natural gas rates decrease
It’s no April Fool’s joke. Prices are going down on some energy sources.
Motorists may be getting hit with higher gas-pump prices, but Athens’ natural gas customers are getting a break on their monthly bills.
“As of April 1, natural gas rates for residential and commercial customers of the city of Athens Gas Department had been reduced by 27 percent over the last four months,” said Steve Carter, Gas Department manager. “This is possible because of the quick recovery of the pipelines on the gulf after the hurricane, a milder winter than predicted that resulted in an increase in storage volumes and the reduction of over all demand of natural gas.”
Carter said that natural gas remains the most energy efficient and reliable energy source when it comes to resistance heat, such as that in water heaters, cook stoves, clothes dryers, and central heating and cooling units. Carter, said that compared with other energy sources natural gas is the most economical also.
For instance, per 1,000 Btu’s, (British Thermal Unit) natural gas costs $13.83, compared to $20.88 for propane and $19.10 for electricity.
Carter said that heat pumps do not employ resistance heat while under normal operation they blow air heated to 68 to 70 degrees. He said under those circumstances, electricity is more economical. However, when the temperature drops and emergency heat strips come on, they employ resistance heat and if natural gas powered, the system operates more economically.
“While we strive to obtain the most economical rates possible, there are some things that are beyond our control such as natural disasters that may interrupt the flow of gas and push prices higher as we all experienced with Hurricane Katrina,” said Carter. “Also, natural gas is a commodity and traded daily on the commodities market, the New York Mercantile Stock Exchange. Therefore, manipulation based on speculation and future predictions occurs periodically.”
Carter said that an example of that manipulation occurred Friday when the day started with wellhead price at $7. “Then there were rumors of a hot summer and, boom, it went up 60 cents.”
Carter said these manipulations and fluctuations could be controlled by an oversight committee appointed by Congress.
“While there is some movement in this direction, no action has been taken,” said Carter. “Consumers can help by calling their local congressman and voicing their concerns about market manipulation.”