Supply factors that may affect prices
Variations in the amount of natural gas produced
Volume of gas imported and/or exported
Amount of gas in storage facilities
Demand factors that may affect prices
Seasonal weather changes
Components of natural gas rates
Rates for residential consumers include two main costs: commodity costs and transmission and distribution costs.
The commodity cost is the cost of the resource itself.
The transmission and distribution cost is the cost to move the natural gas from where the resource is produced through pipelines to a utility company and then from the utility to a customer’s home.
In addition to these costs, a number of taxes are also included in rates.
Many consumers want stability when it comes to rates and monthly bills. Due to supply and demand and the factors listed above, however, price changes are inevitable. One way to protect your rates from monthly changes is to sign up for a fixed rate supply service plan. Seasonal temperature changes and the market won't change your rates, therefore you can better predict your bill and not worry over the market or weather conditions.
As demand for this natural resource continues to increase, prices may continuously change. Stay informed of the factors that affect prices so you know when to expect rate changes.