It’s no secret that during the winter months, both electric and natural gas bills can increase by as much as 50 to 100 percent. Both demand and consumption is increased, especially during huge winter storms.
Among the coldest states in the U.S. include Alaska (no surprise there), North Dakota, Maine, Minnesota, Wyoming, Montana, Vermont, Wisconsin, New Hampshire, Idaho and Michigan.
And based on the current weather pattern for late 2017 and early 2018, the cold snap is here to stay for at least the next couple of months.
It won’t be a shock to consumers living in extreme cold weather areas that their utility bills will increase. But we also have some additional thoughts as to what other things could surprise you on your upcoming winter electric and energy bills.
Record-Breaking Energy Consumption
The fact of the matter is, natural gas consumption is experiencing record usage. The demand for natural gas has been on the rise annually since 2010. And according to the website seekingalpha.com, they believe there will be a “whopping 14.5% growth in January (2018) and an even more sizable expansion in February.”
So what does this mean exactly to the consumer? The correlation is a simple concept: as the overall usage of natural gas rises, the higher the wholesale prices for utility companies and suppliers. They pay more which means that you will pay more.
Rate increases are nothing new. In fact, in the past, the Public Utility Commission have warned the public about them. Those affected the most about rate increases are consumers who are on a variable rate plan. That being said, your next few bills may have a few scary numbers.
But for those on fixed rates plans, you will not experience the same rate spikes. The fact of the matter is, if you are on a variable rate energy plan, you should absolutely consider switching to a fixed rate plan pronto! It’s time to start saving money now.
More Energy is Used on Snow Days
Let’s think about that concept for a second. On those brutally huge snow days, what happens? First, schools and businesses announce that they are closed. Now we have a situation where everyone is staying home. This leads to more energy usage.
So while it may be great for kids to skip school for a day or two and great for parents and adults to have a mini-vacation from work, it isn’t so great for energy bills. The bottom line is, as more families stay home, the more natural gas and electricity are used which quickly drives up consumption.
And as mentioned earlier, the higher consumption leads to higher prices. During these times of high energy consumption, the combined energy bills may reach $250 in New Jersey, $200 in New Jersey, $225 in Pennsylvania and $275 in Maryland.
All of the factors mentioned above lead to higher winter electric and energy bills. And because of this, we here at New Jersey Power and Light believe that you, as the consumer, have the right to protect yourself and your family from these volatile rate spikes. In fact, we can save you over 35% on your electric and natural gas bills.