MINNESOTA (KTTC) -- Minnesota Energy Resources is informing customers that their heating bills will likely rise as the temperatures fall due to a nationwide spike in natural gas prices.
The price of natural gas has more than doubled this year and currently sits at the highest level in a decade.
An analysis done by Minnesota Energy Resources predicts the typical residential customer will pay $44 more a month this winter compared to last year, assuming typical winter weather.
Natural gas is a pass-through expense, which means Minnesota Energy Resources does not earn a profit on the gas it purchases for its customers.
The company buys and stores gas when it is typically lower priced, locks in guaranteed natural gas contracts at fixed prices and purchases gas in the market. This approach is estimated to lower this winter’s gas costs for Minnesota Energy Resources customers by 15%.
The Minnesota Department of Commerce estimates 600,000 households are income eligible to receive federal funding, and customers can receive up to $1,600 to help pay their energy bills.
Customers can also take steps to manage their energy by turning down their thermostats, sealing gaps around windows and doors and scheduling an annual furnace tune-up.