Natural Gas Prices Surge As Temperatures Plummet

From CBS News

The newest wave of cold air helped to deplete fuel supplies and send prices for propane and natural gas to record highs. Higher natural gas prices also are leading to sharply higher wholesale electricity prices as power utilities snap up gas at almost any price to run power plants to meet higher-than-normal winter demand.

Homeowners who use natural gas and electricity will see higher heating bills because they’ll use more fuel. But prices won’t rise dramatically because utilities buy only a small portion of the fuel at the elevated prices.

As WCBS 880 Connecticut Bureau Chief Fran Schneidau reported, natural gas is the premium commodity these days in the northeast.

Energy consultant Gene Gilford explained most of the electricity in the region is generated by natural gas. He added supply is not limited.

“The northeast does not have a lot of long distance pipelines to bring that gas from where it’s produced to the markets where it’s needed,” he told Schneidau.

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