'I thought it was a mistake': What's driving higher natural gas bills in Maine
WINDHAM (WGME) — Many natural gas customers in Maine say their bills are skyrocketing, in some cases more than doubling in just one month, prompting questions about how those increases are determined and communicated.
Larry De Hof says he expects to pay more for natural gas during the winter, but his most recent bill still caught him off guard.
“It was quite a shock,” De Hof said. “I thought it was a mistake.”
De Hof’s bill jumped more than 100 percent from January to February, totaling about $550, even though his usage increased only slightly. He says it was the highest bill he has ever received.
“The most ever is $300. If it gets over $300, I get worried,” De Hof said. “But $500, never.”
Larry De Hof says his natural gas bill more than doubled from January to February (WGME){ }
The increase is tied to the supply portion of the bill — not distribution charges.
In just one month, the natural gas supply rate for Maine Natural Gas customers rose from about 94 cents per therm to $1.94 per therm.
Phil Bartlett, chair of the Maine Public Utilities Commission (PUC), says utilities don’t profit from those supply costs, and they’re adjusted monthly based on market conditions.
“There’s no markup. That money is just passed through to customers, and that has long been the way natural gas has been handled,” Bartlett said. “Ordinarily, the variation is not quite as significant.”
He says the prices are heavily influenced by factors outside the state’s control.
“We’re really at the mercy of international factors,” Bartlett said. “It just shows up in gas prices much more quickly because of the month-to-month procurement.”
Natural Gas Pipeline (WGME){ }
In a statement to the CBS13 I-Team, Maine Natural Gas pointed to a combination of factors for why supply charges rose so drastically over the past few months.
“The increase is primarily driven by higher natural gas prices this winter,” a spokesperson wrote. “Colder-than-usual temperatures have increased demand nationwide, and, in northern New England, limited pipeline capacity can make prices more sensitive to these conditions.”
Maine Natural Gas says it posts monthly rates on its website and notified customers by email about the large increase in February. However, some customers say it still caught them off-guard.
“Fortunately, I can afford to handle it,” De Hof said. “But I know there’s other people who live paycheck to paycheck and all of a sudden an extra $200 out of that, they’re not going to be able to do it.”
He believes gas utilities should be required to do more direct and timely notifications, especially when there are such large swings in price.
“The public should be notified in advance and have a chance, maybe at a hearing, to testify and put their input in and also hear why they’re raising the rates,” De Hof said.
Bartlett with the PUC says the issue of how and when notifications are sent out could be revisited.
“I’m sure there will be a conversation about that, I’d certainly welcome it,” Bartlett said. “We’ve definitely seen real concerns this winter, and I completely understand the challenges folks are facing.”
After February’s spike, relief may already be on the way.
Maine Natural Gas says its supply rate has dropped by more than $1 a therm for March, which should lead to lower bills in the coming month.
For those struggling to pay heating costs, utilities may offer assistance programs, including discounts for qualifying low-income households and payment plans.
Customers are encouraged to contact their utility directly to learn about available options. You can also find current natural gas rates across the state HERE.