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Natural gas prices at an all-time high


The Atlanta Journal-Constitution
Published on: 06/09/08

In a normal year, now is the time when natural gas prices dip between seasons — and consumers lock in favorable contracts for the winter.

This is not that year.

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Natural gas prices posted for June are not only the highest of the year, they're the highest in history — higher even than in the record-breaking months that followed Hurricane Katrina in 2005.

Katrina, followed by Hurricane Rita, battered Gulf Coast gas supplies that September.

The next month, the per therm price charged by marketers jumped to between $2.20 and $2.55 per therm — figures so high that the state Public Service Commission rushed to allocate aid to the poor and elderly.

This month, gas marketers variable prices ranged from $2.88 to $3.33 per therm.

Fixed prices are also up over the post-Katrina months, although not as dramatically. The figures are the apples-to-apples prices that the PSC uses, and include all fees.

The retail prices are based on much higher wholesale prices for natural gas.

The steep climb in wholesale price coincided with the soaring price of oil and gasoline and is likely partly linked to it.

Struggling with prices at the pump, most customers haven't yet noticed the natural gas problem because they're not heating their homes and therefore not buying that fuel in volume.

Because electric companies lean on natural gas-fired plants in the summer, prices are unlikely to drop until the fall, which is the other traditional time to lock in rates.

And it's anybody's guess what will happen even then.

Gas companies traditionally store relatively cheap gas for the winter at this time.

They're now storing high-priced gas instead.

Keith Poston, a spokesman for AGL Resources, parent of Atlanta Gas Light and Georgia Natural Gas, said wholesale gas prices are up 118 percent over last summer.

"It's not shaping up to be a good year right now," he said.

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Comments

By nopassnoplay

Jun 11, 2008 10:45 AM | Link to this

Brad,
Great job locking in a low price Sept of last year. That price is only good for 12 months. So you will be paying $1 therm during the summer when usage is about 10 therms a month. Lets see what your new rate is in in Sept when you have to renew.

By Expat

Jun 10, 2008 11:25 PM | Link to this

you can blame in on Bush if you like. I would happily pull the lever after he is convicted of treason and war crimes, but the truth is we are all responsible.

We let him steal the first election. we then voted him in for the second time. We listened to the lies and accepted them because it made us feel better.

We drove Hummers and F150's. We bought McMansions and super-sized burgers. We borrowed beyond our means and destroyed the dollar.

Go ahead and blame Bush; he deserves it. But let's not forget to blame ourselves.

Burn, baby, burn.

By Brad

Jun 10, 2008 5:21 PM | Link to this

Ha Ha!! I opted to take the fixed rate of $0.99/therm instead of the variable rate of $0.69/therm last September and now I'm saving a ton!! Those of you that opted for the variable rate probably have an ARM on your mortgage too!!! Suckers!!! Ha Ha!!

By Steve Bigelow

Jun 10, 2008 4:24 PM | Link to this

I have pretty much given up on this type of forum as a useful place for intelligent discussion but here I am once again compelled to comment.

I don't know the backgrounds and authoritative expertise of you all, but I see the partisan rhetoric clouding the minds of (probably)normal, intelligent and honest folks, that can't wait to jump to emotional conclusions and generalizations concerning issues that most folks, (including me on most global issues), don't have enough information to make an intelligent statement about. But of course when it comes to issues vital to our national interest many folks don't let the lack of facts get in the way of expressing their opinions.

If both sides would quit swallowing the Cool-aid served up by the media spin from both "sides of the aisle" and use their common sense along with looking for objective sources we could surely have more civil and useful discussions.

No one wins an argument. Take time for some humility and don't be part of brainwashing apparatus that clouds so many minds and ends up castng votes out of anger as opposed to a more sensible approach.

By Jim Bob

Jun 10, 2008 3:41 PM | Link to this

The post by Adam Smith about the effect of the political chicanery of the corrupt speaker of the GA House Richardson on natural gas prices is spot on. The $300 million rate hike (on how few GA gas customers?--go figure, that's part of the problem, at hundreds of dolars per meter/customer to make up that AGL $300 Millon. ) Richardson even blocked the federal mandate for a GA seat belt law for pick-up trucks, though they are the new family car, costing Georgia $16 million/yr in federal DOT support, lives [of children]and an enormous trauma/local responder tax burden. (Jeb repealed the helmet law in FL, 6-fold loss of life, though he says he's 'pro-life.') Think a bribed brain like this has any concern for helping working people? Where is the so-called 'conservative' leadership? Two kinds of Republicans-millionaires and suckers. Conserve, garden, and invest in efficiency--that's the best way to respond to such sleazy Republicorporate domination. I ain't forget how to how the garden. I don't need to buy their gasa at home, too bad they've sent all the manufacturing to Communist China.

By Ron Jenkins

Jun 10, 2008 2:33 PM | Link to this

Hello America-
This is what happens when you work 9-5 and vote Republican. If everyone would wake up and smell the coffee you would see what is going on. Everyone is working just for C2C(check 2 check) Everyone is oil, gas whatever is paid for life so, the main point is if you 9-5 Republican vote for McCain you and everyone else are in more trouble

By rd

Jun 10, 2008 2:21 PM | Link to this

We know Bush is responsible for everythin bad. I just hope Osama starts Jimmy Carter's 2nd term soon so he can save us. Free Bubbleup and Rainbow Stew for everyone!

By Sharp

Jun 10, 2008 2:16 PM | Link to this

Free to be me:
It is not "them vs. us", you need to educate yourself on our energy issues. It is not always "the man" screwing us over.
We cannot produce enough oil or natural gas to keep up with our demand anymore. There is LOTS left in the ground but we cant get it out any faster than our current rate. When that happens prices start skyrocketing.
Read This

By McCan't Republicon

Jun 10, 2008 1:20 PM | Link to this

Republicans won't admit it but the turmoil in Iraq and that part of the world, which Bush Jr. started, has pushed our oil costs and remarkably, oil company profits to the highest ever, and natural gas is just going along for the ride. Bush Jr., a Texas oilman, deserves the credit for these oil company profits and our economic problems.

By D Right One

Jun 10, 2008 1:12 PM | Link to this

I'm already on a high variable rate with Ga Natural Gas because I'm new to the area. Natural gas is the highest utility bill here that I've ever paid. When I had an electric heat pump, the highest bill I ever had was $175. With the gas, it's been close to $400 a month.

My thought is that Bush and all his cronies are sticking us for every dime they can make before the next election cleans these guys out of office. Thanx alot guys.

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