NSTAR heating costs going up?

[moireach.livejournal.com]

I'm assuming I'm far from the only person whose heat is provided by NSTAR natural gas. I'm hoping someone can help me understand why prices are up this winter over last:

The useful little comparison chart on the back of my current bill shows that natural gas prices per therm were $1.24 this January, as opposed to 97.9 cents in January 2008. I'd assumed that the plummet in oil prices would be driving down energy costs in general, and some very cursory googling seems to show a big drop (~50%) in natural gas costs over the past year, too. Is this something NSTAR can decide arbitrarily, or is this the actual legitimate cost to them? (I get suspicious, because of things like airlines still charging fuel surcharges, despite the huge drop in fuel costs, etc.) If it is something they can set, has anyone had any luck trying to talk them into a lower rate, a la cable companies?

It's frustrating that even with NSTAR's delivery charges down, and with pretty strenuous attempts on our part to keep heating costs down (we have a timer on the thermostat, vacuum-insulated windows, have blocked off rooms, used plastic window seal, keep the heat low, etc etc), the bills keep going up.

Comments

[icecreamempress.livejournal.com]

Here's (http://www.mass.gov/?pageID=eoeeasubtopic&L=3&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Natural+Gas+Industry&sid=Eoeea) the contact information for the state agency that oversees energy providers.

[moireach.livejournal.com]

This whole site is actually really interesting, thanks. This (http://www.mass.gov/?pageID=eoeeaterminal&L=5&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Natural+Gas+Industry&L3=Natural+Gas+Market+Data&L4=Cost+of+Gas+Adjustment+Information&sid=Eoeea&b=terminalcontent&f=dpu_gas_CGACs_peak_2008-2009_revision2&csid=Eoeea) makes it look like NSTAR is definitely on the higher end of the spectrum, but I don't know why.

[srakkt.livejournal.com]

It may well be that, like airlines, utility companies contract ahead for vast amounts of the fuel/resource they need. In the case of airlines, declining fuel prices have only just begun to actually affect them as their contracts begin to run their course (for the short term fuel contracts).

[moireach.livejournal.com]

Hmmm, that makes a lot of (frustrating) sense. It looks like the big price drop for natural gas started in July; I wonder when NSTAR would have bought in.

[mattdm.livejournal.com]

This is definitely the case — it was discussed in a Boston Globe article a year (or two?) ago about whether the "lock in a fixed price" option was a good idea. The bottom line for that was "probably not", with one of the reasons being that futures purchases made the price unlikely to change rapidly in any case.

[duffless2323.livejournal.com]

I had the very same question, why is my bill going up when gas prices are down . I've seen the same almost 30 cent increase, which really adds up. If you find out anything please post it. Thanks

[moireach.livejournal.com]

Will do. See the comment above yours, for a possible reason.

[toodleskitty.livejournal.com]

My frickin' NSTAR bill was absolutely brutal for January...

[moireach.livejournal.com]

Sucks, doesn't it? I was even out of town for almost a week in January, so dropped the thermostat to 50 for the whole time, and it's still horrific.

[chumbolly.livejournal.com]

The prices are not arbitrary. NSTAR is a regulated utility that sets its prices through a regulatory rate case. The company is probably granted a modest return on investment as part of the delivery charge, and the charge for gas is likely a passed through cost from wholesale suppliers set in long-term contracts. I believe the prices NSTAR pays for gas in its contracts have to be approved by the state, though I'm not certain. My guess is that the price we pay somewhat trails the current market price since it is based on purchases NSTAR made at least several months ago. Perhaps will see some savings next year based on today's spot market prices.

Delivery charges are DOWN...

[nvidia99999.livejournal.com]

For some reason (compared to last year).

[moireach.livejournal.com]

Yeah, this (http://www.mass.gov/?pageID=eoeeaterminal&L=5&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Natural+Gas+Industry&L3=Natural+Gas+Market+Data&L4=Cost+of+Gas+Adjustment+Information&sid=Eoeea&b=terminalcontent&f=dpu_gas_CGACs_peak_2008-2009_revision2&csid=Eoeea) would seem to confirm state involvement. Thanks for the info; I hope Future Me enjoys this economic fallout in 2010.

This year I consume a bit less...

[nvidia99999.livejournal.com]

But I end up paying the same as last year, approximately. I had the identical question, though. I think they sent some lock-in rates a while back (other companies too). But I seem to remember the rates were not very good.

Re: This year I consume a bit less...

[moireach.livejournal.com]

Yeah, I seem to remember they were in the $1.20-something range. Definitely worse than the therm rate at the time the letters went out.

[laryu.livejournal.com]

Residential prices are much less volatile than prices at the wellhead (which is probably what you saw through google), so the 50% drop in spot or front-month prices since early summer will not be reflected in your bill. NSTAR negotiates with the state to set prices. The EIA forecasts residential natural gas prices for this heating season to remain higher than last season.

[moireach.livejournal.com]

Yeah, I figured my googling was pretty uneducated, and this makes sense, even if it's frustrating. Thanks for the info.

NSTAR-funded insulation

[chumbolly.livejournal.com]

On a related note, one of the costs built into your gas bill when it is set in the rulemaking proceeding between NSTAR and the state is a residential energy conservation charge. That charge funds conservation programs that, in effect, cuts the amount of gas that NSTAR sells. How is that relevant? One of the conservation programs subsidizes weatherization and insulation costs. Right now, NSTAR will pay 75% of the cost to insulate your home up to $2000. I had the two family I live in insulated for about $4,000. Since the two units in the house are separate NSTAR customers, NSTAR paid about $3000 of that. The insulation has cut my gas use about 35%, and my house is much more comfortable, and noticeably quieter. I'll re-capture my up front cost in one winter.

If you own and your house isn't already insulated, this is a no-brainer.

Re: NSTAR-funded insulation

[moireach.livejournal.com]

Oh, this is good to know -- unfortunately I rent, but hopefully it'll be useful to someone else here.

Re: NSTAR-funded insulation

[tfarrell.livejournal.com]

Similarly, if you rent and your home is not insulated, you should talk to your landlord about them getting it insulated, and plan to move before next winter.

Re: NSTAR-funded insulation

[mamajoan.livejournal.com]

But you still have to outlay the remainder in cash, right? So it's not as much of a no-brainer if you don't have a grand or two to spare. Also, I hear the waiting list is really long.

Re: NSTAR-funded insulation

[nvidia99999.livejournal.com]

What kind of insulation did you use? How did they do it? Did they punch holes in your siding to fill the inside of the walls with the insulating material? Did they also do spaces between floors?

[kalliejenn2.livejournal.com]

yeah, ours have gotten insane, too. i think our bill (for our small APARTMENT) was $278 this month!

[somertricky.livejournal.com]

This may have something to do with the cold temperatures lately: after plugging along for the season on one refill, the oil guy came by twice in two weeks to fill the tank.

If the monthly costs wind up being too much, NStar can set up a budget plan. We did this after the one really, really, cold-ass winter twelve or so years ago (Ron will probably remember) had us looking at $300 gas bills.

[jamiesquared.livejournal.com]

Strangely enough our bill is cheaper than last year.

[moireach.livejournal.com]

Ha, what's your secret?

[m00n.livejournal.com]

My cost-per-therm charges break down as follows:

Jan09 $1.24242
Dec08 $1.24240
Nov08 $1.18710
Oct08 $0.70710
Sep08 $0.83071
Aug08 $1.63560
Jul08 $1.59220
Jun08 $1.18642
May08 $0.99000
Apr08 $0.97990
Mar08 $0.97990
Feb08 $0.97981
Jan08 $0.97987
Dec08 $0.97990

I paid about $126 to heat my apartment for January this year. My apartment is a two bedroom + 1 living room, about 700 square feet with 7 foot ceilings and it's on the top floor (yay, attic apartment). The windows and insulation are all new as of last year. AFAIK the insulation is the blown-in kind. The heat and hot water are natural gas and the stove and oven are electric.

[m00n.livejournal.com]

That last one should have been Dec07. oops. The number is right at least.

Keyspan/National Grid

[whitz3nd.livejournal.com]

I have NStar for only electricity, however, I have Keyspan/National Grid as my Natural Gas provider. We have a three bedroom apt, gas heat, hot water & stove. We keep the apt at about around 66-67. The bill is about 350+ a month since December. One thing I noticed which I did not catch before was the "Delivery" charge of $102.00. I have not figured out that one yet!
I was paying those prices in a two bedroom apt with more drafts then Carter has liver pills and the place I am in now, is bigger and actually fairly well insulated. Myself and the roommates were floored when we saw the pricing. This kind of gouging really does need to be stopped! Just because they feel a pinch from our economy slump, does not mean they need to make us pay for their losses. That is my two cents.