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10.2.03 Price decline may help natural gas customers Recent declines in the price of natural gas could help ease some of the pain Omaha-area consumers are likely to feel when their heating bills arrive this winter. From its abnormally high perch this summer, the wholesale price that the Metropolitan Utilities District pays for natural gas has dropped about 19 percent. Still, the price is about 18 percent higher than it was a year ago at this time, so consumers will have to hope for a warm winter to keep them out of a pinch. Overall, gas utilities have advised consumers to brace for bills that are about 15 percent to 25 percent higher than last year. The wholesale price is what M.U.D. pays for the gas that it buys from suppliers, and it is a cost that the utility passes on to customers. Because natural gas prices are so volatile, a summer decline in prices can quickly be erased by a cold fall or winter. M.U.D. General Manager Tom Wurtz said the utility's weather consultants are forecasting a normal to warmer-than-normal winter. If that forecast holds true, it could make all the difference. As Jim Knight, M.U.D. manager of energy acquisitions, told the M.U.D. board Wednesday, a warm winter will allow prices to continue their downward trend. Cold weather is likely to send prices up. Customers need not fear that the utility will run out of natural gas, Knight said. The utility will have completed filling its storage reserves by the end of the month, putting it in good shape for winter. Furthermore, its suppliers have assured the utility that they should be able to meet their obligations to M.U.D. this winter. |
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