How a deep freeze in the South burned Minnesotan consumers Minnesota utilities made a losing bet on natural gas markets, leaving customers on the hook for higher prices. April 17, 2021 8:00am Text size Copy shortlink:
When a deep freeze hit the South in February, the natural gas market essentially failed Minnesotans, leaving them on the hook for an unprecedented $800 million in extra charges.
Under state law, utilities pass down wholesale gas costs, which skyrocketed in February. Many Minnesota consumers will pony up at least 50% more than they pay annually for their heating bills.
Customers of CenterPoint Energy, the state s largest gas utility, will be hit the hardest: $354 for the average residential household. The state s second- and third-largest gas utilities, Xcel Energy and MERC, expect surcharges of $270 and between $225 to $250, respectively.
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Minnesotans will pay up to $400 more for their February heating bills because of the spike in U.S. gas prices after a historic cold wave hit the South.
That was the word Tuesday from the state s largest gas utilities at a special meeting called by the Minnesota Public Utilities Commission (PUC) to examine the surge in gas prices. The PUC voted to start a formal investigation. We have many questions and few concrete answers, said Katie Sieben, the PUC s chairwoman.
The big gas charge incurred in February won t start showing up on consumers bills until September. The cost would normally be spread over 12 months. Regulators might look at spreading it over a longer period of time.