Senator Tina Smith (D-MN) is calling for federal investigations into possible natural gas spills in areas affected by severe winter storms that have caused power outages in Texas and other large parts of the state.
Why it matters: In a letter sent to regulators on Saturday, Smith said natural gas locomotives were more than 100 times higher than their typical levels, increasing costs for consumers in the affected areas.
- Smith said the price increases threaten the ‘financial stability of some utilities that do not have enough cash reserves to cover their short-term costs in this exceptional case.’
- “A public report should set out what has taken place, make recommendations to prevent such problems in the future, and determine whether laws have been violated,” Smith said.
Zoom in: Extreme weather has pushed electricity demand up an unprecedented amount while utilities in states like Texas have been shut down due to the snow.
- Winfield, Kansas, is likely to pay $ 10 million for natural gas in the past week alone, according to an interview with City Manager Taggart Wall on KWCH-TV. He added that residential customers could pay around $ 2,500 this month.
- Officials in Morton, Illinois, this week reported gas prices at nearly $ 225 dollars per unit, although they normally sell for about $ 3.
- The price of natural gas in Oklahoma reached a record high of $ 600 per million British thermal units.
The other side: Jake Rubin, spokesman for the American Gas Association, said AP utilities use long-term contracts to guarantee enough inventory at an affordable rate.
- ‘Spot prices have risen in some regions due to the increase in demand. Families and businesses that use natural gas have been protected from higher prices by careful planning of their utilities. ″
What’s new: Texas regulator announced Saturday that it has launched an investigation “into the factors combined with the devastating winter weather to disrupt the flow of electricity to millions of homes in Texas.”
Go deeper: Biden declares major disaster in Texas after winter storms