Ameren Illinois anticipates steady natural gas prices for 2012-13 heating season

Ameren Illinois anticipates steady natural gas prices for 2012-13 heating season

8 months ago

There is a increased supply of natural gas in North America

Ameren Illinois customers can expect a continuation of moderate natural gas prices during the upcoming 2012-13 heating season.

“We anticipate customer natural gas prices for this winter will be similar to prices paid last winter,” said Ameren Illinois Gas Supply Manager Ken Dothage. “This moderate trend in natural gas prices is the result of increased North American natural gas supply due to the rapid development of shale gas throughout the U.S., continued sluggish domestic and global economies and soft worldwide demand for all forms of energy.”

During the 2011-12 heating season, Ameren Illinois customers paid an average of $0.59 per therm which includes the cost of interstate gas transportation, leased storage, and the natural gas commodity. Ameren Illinois anticipates the 2011-12 heating average season price to remain flat as compared to last year.

An actual monthly bill is based on the amount of natural gas a customer uses. The 2011-12 heating season was unusually mild, resulting in less natural gas being used by many residential customers. However, customers can expect to use more natural gas if there is a return to more normal temperatures during the 2012-13 heating season. This most likely would result in higher overall bills as compared to last winter.

Dothage also stressed that Ameren Illinois has secured adequate natural gas supplies to meet customer needs during the upcoming heating season. He noted that Ameren Illinois has a significant portion of its natural gas supplies hedged or “price protected” for the upcoming winter to insulate customers from market price volatility.

Natural gas is a commodity which Ameren Illinois purchases from various producers for delivery to its customers.  Ameren Illinois does not profit from or mark-up the cost of natural gas supplies purchased.

“While the expectation of stable natural gas prices are welcomed, we recognize and continue to be concerned about the impact the cost of heating may have on our customers,” Dothage said. “We will continue to help our customers understand this issue and provide the information they need to better manage their energy usage.”

Customers are encouraged to adopt proven energy conservation practices that will help reduce bills without sacrificing personal comfort. Dothage said the place to begin is by visiting ActOnEnergy.com to review ActOnEnergy® savings tips.

Ameren Illinois provided information for this report.