Piedmont Gas Prices to Shoot Through the Roof

Following one of the coldest Decembers in recent history, and with the end to increasing natural gas prices nowhere in sight, Piedmont Natural Gas is telling its customers to expect their January gas bill to double December’s bills.

The increase in natural gas usage is a direct result of the frosty winter weather. Last winter, the weather was 10 percent warmer than normal, and to date, the weather is 37 percent colder than normal in the company's Carolinas service area.

The demand for natural gas on Piedmont's system has been so great that the company suspended service to some of its industrial customers who, by contract, have the ability to switch to other fuels, when gas is needed by residential customers during very cold weather. This is the first winter in five years in which Piedmont has found it necessary to suspend service to industrial customers for significant periods in order to meet the demand for residential customers.

Piedmont predicted higher wholesale natural gas prices, and has been informing customers to expect 30 percent to 50 percent increases on their gas bills this winter since July. Wholesale spot market prices for natural gas are four times higher than last year's price, causing Piedmont to increase its residential rates approximately 50% from last January.

Piedmont purchased gas at lower prices and placed the gas into inventory supplies last spring. That gas is now helping the company hold its current costs down. About two-thirds of Piedmont customers' bills reflect the wholesale cost of gas. The remaining third reflects the cost of operating Piedmont's distribution system.