Omahans expected to see lower natural gas heating costs this ... - Omaha World-Herald

Omahans expected to see lower natural gas heating costs this winter, MUD says

Omaha residents who use natural gas for heating are expected to see lower costs this winter compared to last year thanks to lower gas prices, according to the Metropolitan Utilities District.

Natural gas customers in the Midwest are expected to see a 21% decrease on their monthly heating bills this winter, according to the U.S. Energy Information Administration’s Winter Fuels Outlook released this week. That percentage is based on “normal” winter weather.

Nationwide, natural gas customers are expected to see a 15 to 25% decrease in heating costs this winter, depending on if the weather this winter is on track with “normal” or is warmer or colder than expected.

Those predicted savings are mostly thanks to an increase in natural gas storage levels going into this winter heating season, according to the outlook.

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Both gas storage levels and production are higher this year than last, according to information provided by MUD.

While the components of customers’ bills that fund operation and maintenance costs may be higher than last year, the decreased cost of natural gas is expected to pass on lower overall costs to customers, according to MUD.

MUD estimated last year that its residential natural gas customers would pay 17% to 18% more on average that winter compared with winter 2021.

Natural gas is currently the main heating fuel in 46% of U.S. homes, according to the outlook, and natural gas is used in the majority of homes in the Midwest.

MUD says it is using several strategies to lower natural gas prices for its customers this winter, including long-term supply contracts and on-site storage. MUD is also currently renovating its Liquefied Natural Gas plant, which will increase the plant’s capacity for this winter.

MUD also estimates that it will save its customers $12 million this year because 74% of its natural gas is purchased via prepaid gas deals.

A long-term transportation agreement with Northern Natural Gas, which includes a negotiated “cap,” is also expected to save its customers $17 million this year, MUD said.

MUD provides a budget payment plan option, which spreads out the average household utility usage across 12 monthly installments to avoid bill fluctuations. Other tips for reducing heating costs are also available on MUD’s website.

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