It’s January, which means we are in what the natural gas industry calls the “Winter Heating Season.” Most natural gas customers call it the “I Can’t Believe My Monthly Gas Bill Season!” Winter is when the thermostats go up, which means the amount of natural gas being used goes up, which means the monthly bill goes up.
“But wait!” you say. “I read that the price of energy, including natural gas, has been dropping like a stone. Won’t that make my monthly bill cheaper?”
The cold hard fact is: Your monthly natural gas bill may well be less than original forecasts, but probably not less than last year.
Here is why. Much of the natural gas that customers will use this winter was actually purchased and put in storage this past summer when natural gas prices were higher than they are today. Buying natural gas “off-season” – in the summer – is a long-standing tradition that is approved by those who regulate the natural gas industry.
So why buy gas off-season?
