Heating bills expected to jump 35-55% years ago
Consumers will pay price of storms
Natural gas utility bills for average Kansas residential customers could be approximately 35 to 55 percent higher than last year.
Due to two hurricanes in the Gulf of Mexico, the already-high demand for natural gas and tight supplies of domestic natural gas production could drive up costs to consumers.
"Reliable natural gas service for our customers is our top priority, and we expect natural gas supplies will be adequate again this winter to meet our customers' needs," said Gary Schlessman, president of Atmos Energy's Colorado-Kansas Division. "Gas prices, though, will be much higher than last winter, and we are quite concerned about their effect on our customers."
Hurricanes Katrina and Rita disrupted about 15 percent of the country's natural gas production, which already was tight because of growing demands from power plants and other users.
Cooler weather also could increase customers' bills to heat their homes because the past two winters have been warmer than normal.
"Customers pay only what Atmos Energy has already paid for natural gas — and not a penny more," Schlessman said. "We buy the gas on behalf of customers. We simply pass the cost of the gas on to our customers with no markup."
Gas utility companies earn its income from fees for delivering gas to customers and maintaining its utility distribution system, said Schlessman.
Delivery rates are regulated by Kansas Corporation Commission.
To ensure reliable service and to stabilize the price customers pay for natural gas, Atmos Energy buys natural gas during summer months and stores it underground for use during winter. The company also uses state-approved financing tools to lessen the effect of sharp swings in wholesale gas prices.
"We're fully on the side of our customers in this matter because high gas prices hurt families' budgets and increase our operating expenses," said Schlessman. "We are doing everything possible to buy gas supplies or to contract for future supplies at as low a cost as possible."
