Minnesotans are seeing higher utility bills this winter: Here’s why

Energy costs heating up in Minnesota

Nationwide winter storms have put a strain on natural gas production throughout the U.S., with many Minnesotans reporting “sticker shock” on their latest bill.

(FOX 9) - The warnings to customers came from utility companies near the end of January — a sudden and drastic spike in natural gas prices, albeit only for a few days, had happened, and customers should be prepared to see it reflected in their bill.

Natural gas price surge

What we know:

Annie Dahlquist of Minneapolis told FOX 9 she's already feeling the heat.

"Like a couple of days ago, I got my bill," she told Fox 9. "It was significantly higher. It was like $170 when I was used to it being $75 to $100."

Between Jan. 23 and the 27th, a strong winter storm swept through the southern United States before moving along the east coast.

This was the same time that Minnesota saw a stretch of days when the thermometer didn’t get out of negative numbers.

According to a notice put out by Xcel Energy on Jan. 26, "Xcel Energy purchases natural gas to deliver to its customers and to use to generate electricity. Cold weather across a large section of the U.S. is affecting production of and demand for natural gas, which leads to higher wholesale prices."

In other words, cold weather throughout much of the country increased demand for natural gas and also affected the places that produce and ship it.

Minnesotans getting energy bill sticker shocker

Many Minnesotans are receiving sticker shock in their recent energy bills, with natural gas prices rising drastically in January due in part to snowstorms working across the southern U.S.

15X more expensive

Dig deeper:

The major utilities companies that serve Minnesota all filed notices with the state’s Public Utilities Commission in late January reporting the price spikes.

One filing, from CenterPoint Energy, indicated the price for natural gas had gone to around $70 per dekatherm, which is the standard measuring unit used.

This was confirmed by the Minnesota Department of Commerce, who said typical gas prices are around $4 per dekatherm. CenterPoint listed a typical price at $4.70, making the sudden spike 15 times more costly.

For context, an average home furnace uses around one dekatherm per day during the winter.

The Department of Commerce said they’d have more detailed data on gas usage and price impacts later in February.

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