Smith seeks natural gas price increases during storm
She does not give an estimate of the impact on the average customer for domestic heating. However, Xcel Energy, the state’s second largest gas supplier, says it initially estimated the average bill for residential customers in February. Now the estimate is much higher.
“With the recent rise in natural gas prices, we tentatively think we have incurred about $ 300 per residential customer,” Xcel Energy’s Amcel Liberkowski told the PUC.
The price increases are largely due to a rare winter cold in the southern US, while temperatures in the north were generally below zero. However, Minnesota Senator Tina Smith has called for an investigation to be made to ensure that natural gas suppliers will not keep up with the price during the cold weather.
The PUC voted 5-0 to launch a formal inquiry to examine the impact of the national price increase on customers and the state’s gas services.
This is probably given the seriousness of this problem state and federal assistance may be needed, ‘said PUC chairperson Katie Sieben about the impact on residential customers.
In a news release after the meeting, the Minnesota Department of Commerce and the PUC outlined the focus of the investigation.
“While Minnesotans had reliable power to keep their lights on and stay warm, the Commission learned that some utilities had to buy gas between February 12 and February 17 at at least fifty times higher than average. The formal investigation will be investigated. impact and look for ways to mitigate the impact on utility customers. ‘
Gas prices rise in Minnesota after extreme weather in Texas
Although Minnesotans will see large price increases, they are unlikely to appear on their bills for a few months while the PUC investigates what caused the increases.
During the trial, regulated gas suppliers, which serve the majority of Minnesotans, reported that unexpected gas costs in mid-February would not appear immediately in the customer’s accounts, but could be delayed by a few months pending the approval of the PUC.
The attorney general in Minnesota is also monitoring the price increases.
“While there is never a good time to experience a price push like this during a pandemic, it’s probably the worst time we can make something like this happen,” Ian Dobson told the Attorney General’s Office. said. Major utilities say many customers are already behind in paying their bills due to the pandemic.
Government Tim Walz also weighed in on the issue late Tuesday.
“While we are only beginning to understand the implications of the rise in natural gas prices last week, it is important that we work together and work proactively to reduce the impact on families and small businesses,” he said in a statement. “I am pleased that the Public Utilities Commission is opening an investigation, and that my administration, through the Department of Commerce, will advocate for taxpayers in Minnesota during the process.”