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Natural Gas Supply Prices

Information on natural gas supply prices for National Grid customers.

National Grid obtains its natural gas from a variety of sources. This helps maintain a steady and adequate supply. These measures are part of an overall strategy, including long-term contracts, designed to ensure adequate supply and minimize the impact of price fluctuations on our customers.

Natural gas bills have two major parts ? charges for the natural gas supply itself and charges for delivering natural gas to customers.

The cost of natural gas supply has been higher in recent years due to supply and demand issues. National Grid does not make a profit on natural gas supply. What we pay for natural gas supply is what we charge our customers. Last winter's mild temperatures reduced the demand for gas, so prices are lower than a year ago. But any colder than normal weather can quickly increase prices. National Grid's storage and gas purchasing strategies have positioned us well to supply our customers and minimize the effect of the natural gas market's volatility. Natural gas prices will remain under pressure until supplies increase. This will require restoring U.S. production and adding other sources such as imported liquefied natural gas (LNG).

To better manage higher costs, customers are encouraged to enroll in our Balanced Billing plan.

Natural gas is America’s most popular home-heating fuel because it is efficient, clean and reliable. In the United States, 52% of all heated homes have natural gas heat. And natural gas is increasingly popular for use in new home construction, businesses and electric generating facilities.

Demand for natural gas has increased even during the summer months because that is when the use of electricity increases and many power plants use natural gas to produce electricity. In fact, most new electric power plants are fueled by natural gas.

This increased demand has been "competing" with the gas drillers' ability to replenish the supply. So even though natural gas production has increased over the last few years, it has struggled to keep up with the demand for natural gas.

Convert to Natural Gas

With demand continuing to rise, National Grid is working to increase the natural gas supply available to our region by seeking new sources, developing new ways to get gas supply here, and supporting new energy efficient technologies. The federal energy bill signed into law in August will help in bringing new sources to our region and promoting energy efficiency. It is not expected that this will have an immediate impact on supply prices.

National Grid's efforts include developing new natural gas pipelines and expanding the use of liquefied natural gas (LNG). New pipelines will bring natural gas to our area from places such as the Rocky Mountains and eastern Canada—lessening the dependence on the Gulf region and helping to reduce the impact of storms like Hurricane Katrina. LNG enhances our storage capabilities, helping to ensure that we have gas supply available whenever it's needed. While we do not directly control natural gas prices, we believe that improvements in supply will help to restrain the prices that we and, in turn, our customers pay.

Besides being one of the cleanest burning fuels, natural gas remains your best overall value, especially in comparison to alternative energy choices. Energy prices have risen for all fuel sources, yet clean, dependable, reliable gas heat offers many advantages over other energy sources. Natural gas burns much cleaner than heating oil, which means lower maintenance costs and fewer repairs on your heating equipment. Current market conditions have increased the price of natural gas, heating oil, electricity, and propane. However, the prices of all fuels rise and fall over time and with its many obvious advantages, natural gas has proven to be the preferred energy choice by more than 65 million customers across the nation.

Make use of these National Grid services:

  • Our Balanced Billing plan enables you to better manage your energy budget, spreading the total annual amount of heating your home over 12 monthly payments. This helps you attain more even bills through winter months when gas charges are higher. To enroll, simply pay the Balanced Billing amount shown on your bill instead of the full amount. You can also enroll online.
  • Use our online bill analysis tool for a personalized review of your home's energy usage. (You will need to register, if you have not already.)
  • If you have difficulty paying your energy bills, financial assistance may be available to you. Learn more about our grant programs for low-income households or call us at (718) 403-2171 for more information.

Use energy wisely by practicing these energy conservation tips:

  • Have your heating system checked periodically by a licensed professional-make it an annual part of your home maintenance routine.
  • A well-maintained heating system will hold down fuel costs and provide reliable comfort. Check the filters in your warm air heating system monthly and replace or clean them when they become dirty.
  • If your old thermostat needs to be replaced, consider replacing it with a programmable thermostat that automatically lowers the setting at night and when you are away from home.
  • Here’s how a programmable thermostat pays off: over an 8 hour period, reducing the temperature by 10 to 15% (for example, from 72 to 65 degrees) can lower your heating costs by as much as 10%. Putting on an extra layer of clothing, instead of turning your thermostat up a few degrees, costs nothing.
  • Dry air makes you feel colder than moist air at the same temperature. Shallow pans of water on radiators or near warm air vents, or a room humidifier will help raise humidity levels, produce personal comfort at a lower thermostat setting and save money.
  • Caulk and weather-strip cracks in walls, floors, windows and doors. All of those cracks together could equal an open window!
  • Lower your water heater’s temperature to 120 degrees, or “Low.” This saves money and prevents scalding as well.
  • Stop by your local hardware store and purchase a water heater blanket, low-flow showerheads, and faucet aerators to lower hot water costs.
  • Insulate heating hot air ducts and hot water pipes that provide heat to the rooms in your home. This will reduce heat loss in areas without insulation and will help your heating system work more efficiently.
  • For hundreds of additional energy-saving tips, go to the Department of Energy’s site at www.energysavers.gov or call the Office of Energy Efficiency and Renewable Energy at 1-877-EERE-INF (1-877-337-3463).

National Grid provides links to third-party Web sites for your convenience. We are not responsible for the content of external Web sites.