Late last summer, I wrote about an impending natural gas price hike. Our gas company had written to tell us that our payment under their ‘Equal Payment Plan’ (EPP) would be going up 19%, from $79/month to $94/month. Under the EPP, we pay an equal amount for eleven months (based on expected usage throughout the year) and then, during the twelfth month, we settle up based on actual usage.
Not long after receiving word of the price hike, Katrina and Rita roared into the Gulf and disrupted natural gas production, sending natural gas wholesale prices skyrocketing (along with plain old gasoline). Well, it seems that that the high wholesale prices have now officially come home to roost… We just got a letter from our gas company notifying us that our EPP payment is going up again. This time our monthly payment is increasing to $146/month! Ouch. And we don’t live in a huge house (2000 sq. ft.) or a particularly cold climate. While this increase is probably better than getting hit by a nasty bill at the end of the year when it’s time settle up, I’m still not crazy about our monthly gas bill going up by another 55%. When combined with the previous 19% increase, our payments have gone up 85%/month as compared to last year!!! Time to turn the heat down, I guess.