Natural gas prices skyrocket in Arizona

Published: Feb. 7, 2022 at 10:00 PM MST
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TUCSON, Ariz. (KOLD News 13) - Arizonans typically see higher energy bills during the winter months with colder temperatures during the day and near freezing at night.

That has not changed, but your most recent natural gas bill likely has. Many Southwest Gas customers are seeing spikes in their bills and even tripling in some cases.

If you look at your recent Southwest Gas bill, you might be shocked but not at the amount you are using but price tag that is on it.

“This past December, my gas bill was $40 which was using more heat and gas I thought that was reasonable. Then coming into January, my bill skyrocketed to $93,” said Southwest customer Chris Miller.

Miller said he saw a 125% increase, although he didn’t believe he used more gas than usual.

“My first reaction was, do I have a gas leak? Is gas just coming out of my house? How can it be that drastic of a difference? Hopefully, I am not alone in this,” he said.

And he is not. A number of viewers emailed KOLD News 13 saying they are experiencing the same price hike.

Southwest Gas released the following statement:

“The increase in customer bills is likely due to natural gas price increases between 2020 and 2021 as well as increased natural gas usage during the winter months. Southwest Gas purchases natural gas on behalf of its customers, with no profit to the Company.”

As to why prices are up, Southwest Gas referred to the U.S. Energy Information Administration.

They said natural gas prices are a function of market supply and demand.

When the supply of natural gas is high, that means lower prices. But when the supply is low, the cost goes up.

U.S. Energy Information Administration said these three major supply-side factors affect prices:

  • Amount of natural gas production
  • Level of natural gas in storage
  • Volumes of natural gas imports and exports
  • These three major demand-side factors affect prices:
  • Variations in winter and summer weather
  • Level of economic growth
  • Availability and prices of other fuels

Miller said Southwest Gas should be more transparent on their bills explaining the price increase for natural gas.

“So I am looking at my bill now and you can go down to the details and it says charges, delivery charge, 55 THERMS is what I used.”

For Southwest customers who need financial assistance, click here.

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