The hottest summer on record has resulted in some of our customers using a record amount of electricity. We remain dedicated to continuing to be one of the nation’s most affordable utilities. About 25% of the world’s electricity is produced using natural gas. Despite our efforts to reduce our use of natural gas, some of our plants that produce electricity for customers are fueled by natural gas.
Some of our plants that generate electricity for delivery to customers are fueled by natural gas that we buy. The cost of fuel purchased to generate electricity at those plants as well as the cost of power purchased from other sources are reflected in the fuel adjustment on customer bills. It’s important to note that Entergy does not benefit from increases in natural gas prices that raise the costs of fuel collected through the fuel adjustment. Instead, these sums are distributed to customers at Entergy’s actual cost, and our regulators review them frequently.
True, the price of gas fluctuates depending on world economic conditions outside the control of any utility. But that doesn’t mean we should do nothing about rising gas prices. Instead, we’ve taken a lot of proactive measures to shield our customers from higher gas prices and to lessen their effects. These steps include developing highly efficient natural gas plants that produce more energy (and emit fewer emissions) per unit of gas burned, making investments in current nuclear plants that produce significant amounts of energy without consuming gas and emitting any emissions, and incorporating renewable energy sources like solar that generate electricity without the use of fuel (other than the sun’s natural energy). Additionally, by continuing to diversify our portfolio as we have, we can better shield our customers from the negative effects of increases in the price of any particular type of fuel.
Increased gas prices are affecting gas bills, too. But during the summer, when electricity consumption is typically very high due to the use of electric-powered air conditioning, residential gas customers typically use less natural gas. The effects of those higher prices may be felt in the form of higher gas bills as gas usage for heating rises in the winter months, when residential gas consumption for home heating is significantly higher.
Gas prices are determined by factors outside the control of any utility, including national or international economic conditions, and Entergy has little control over them. Since Entergy does not own any natural gas production facilities, we have no control over natural gas pricing and do not profit from high gas prices. The global gas markets’ supply and demand dynamics have an impact on the fluctuating price of natural gas. The Energy Information Administration has attributed the high prices to supply chain constraints brought on by the pandemic, extreme temperatures and weather-related events, as well as Russia’s ongoing conflict with Ukraine, which has resulted in a shortage of supplies from Russia, the second-largest natural gas producer in the world.
5. I don’t believe customers in other markets are seeing higher bills, so I don’t think Louisiana’s natural gas prices are the only ones that are high.
About 25% of the world’s electricity is produced using natural gas. Global demand for natural gas gradually increased after COVID-19 restrictions started to loosen in 2021, but supply was later limited due to Russia’s invasion of Ukraine in February, which cut off supplies to Europe. When comparing June 2021 and June 2022, the price of natural gas has more than doubled. Tags.
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5. I don’t believe customers in other markets are seeing higher bills, so I don’t think Louisiana’s natural gas prices are the only ones that are high.
The hottest summer on record has resulted in some of our customers using a record amount of electricity. We remain dedicated to continuing to be one of the nation’s most affordable utilities. About 25% of the world’s electricity is produced using natural gas. Despite our efforts to reduce our use of natural gas, some of our plants that produce electricity for customers are fueled by natural gas.
Increased gas prices are affecting gas bills, too. But during the summer, when electricity consumption is typically very high due to the use of electric-powered air conditioning, residential gas customers typically use less natural gas. The effects of those higher prices may be felt in the form of higher gas bills as gas usage for heating rises in the winter months, when residential gas consumption for home heating is significantly higher.
© 2022 Entergy Corporation, All Rights Reserved. It is prohibited to use the Entergy name or logo without the express, written consent of Entergy Corporation, which owns the rights to them as registered service marks.
Some of our plants that generate electricity for delivery to customers are fueled by natural gas that we buy. The cost of fuel purchased to generate electricity at those plants as well as the cost of power purchased from other sources are reflected in the fuel adjustment on customer bills. It’s important to note that Entergy does not benefit from increases in natural gas prices that raise the costs of fuel collected through the fuel adjustment. Instead, these sums are distributed to customers at Entergy’s actual cost, and our regulators review them frequently.
U.S. natural gas inventories have also dropped this year, which together has driven up prices around 300% from just a few years ago.
The 40% of U. S. According to NEADA, natural gas-using homes may see a 30% increase in winter heating costs, which could keep inflation high.
Currently, Europe receives the majority of its gas through pipelines, but it is rushing to build out additional infrastructure to accept liquefied natural gas from nations like Qatar, which can be transported by sea.
Prepare yourself because turning up the heat may cost even more this winter if air conditioning your home felt pricey this summer.
For many years, Russia provided Europe with affordable natural gas to heat its homes and run its factories. However, Russia reduced its supplies after the West imposed sanctions for the conflict in Ukraine, effectively turning its natural gas into a weapon.
Kilduff anticipates that 90 BCF of gas was recently injected into storage. On Thursday, the Energy Information Administration releases its weekly supply report.
The U. S. intends to increase the amount of natural gas that is sent to Europe in order to help make up for the lack of Russian gas, but both export and import capacity must be increased. Thummel said exports should rise to about 20% of U. S. production over the next couple of years.
Thummel added that according to the futures market, gas will remain in the $8 range for close to a year before dropping below $5 once more in April. Given the state of the industry, he claimed to believe the price is excessive.
U. S. Since the beginning of the year, natural gas prices have more than doubled, and this summer’s air conditioning season may cause them to rise by at least another 25%.
“The U.S. economy has not experienced a significant uptick in the past month,” S. Matt Palmer, senior director of North American natural gas at S&P Global Commodity Insights, stated that the lower 48 states production. “You’re seeing LNG exports running at full capacity; power sector burn is really strong and layer in the heat we’re seeing; there’s expectation that the southern tier of the continent will experience well above average temperatures in May and June.” Thats a recipe for higher prices. “.
Is Your Gas Bill High? Or Why Is My Gas Bill High? Do This …
FAQ
What uses the most gas in a home?
The most residential gas is used for space and water heating, then for producing electricity, as you may have guessed.
How can I keep my energy prices down in the summer?
- Give your air conditioner a checkup – or a replacement.
- Adjust your thermostat. …
- Spend time outdoors. …
- Unplug devices. …
- Use fans instead of A/C. …
- Plants can provide much needed shade. …
- Lower your water heating costs. …
- Use electricity during off-peak hours.
Will natural gas prices go up in 2022?
FERC predicts higher winter natural gas prices despite bearish supply and demand factors. FERC is projecting elevated U. S. Despite the majority of the country being expected to have mild weather and steadily rising domestic production, natural gas prices for the winter of 2022–2023
What appliances use gas in the house?
- Heating and cooling air.
- Providing gas for ranges (stoves and ovens)
- Fireplaces.
- Laundry dryers.
- Barbeque grills and fire pits.
Reference:
https://www.dps.ny.gov/summer
https://www.npr.org/2022/09/17/1123042757/electricity-power-utility-heating-bills-natural-gas-russia-ukraine-heat-wave