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.

[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]

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.

[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

[toodleskitty.livejournal.com]

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

[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.

[moireach.livejournal.com]

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

[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.

[toodleskitty.livejournal.com]

OH YEAH! I can top that! I have a room mate who was gone, out of town, and I had all of her appliances in her room unplugged from January 1st until January 20th and I still get a bill for $234, up from $130 in December. Dang we are screwed!

[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.

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.

Delivery charges are DOWN...

[nvidia99999.livejournal.com]

For some reason (compared to last year).

[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.

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: 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.

[moireach.livejournal.com]

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

[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.

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.

[kalliejenn2.livejournal.com]

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

[srakkt.livejournal.com]

Yeah, I don't know whether it actually works that way for natural gas, but it certainly does for heating oil. In any event, it's certainly frustrating.

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.

[jamiesquared.livejournal.com]

Strangely enough our bill is cheaper than last year.

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

[chumbolly.livejournal.com]

Actually, you have to pay the full amount up front, and then wait to be reimbursed. So that could definitely be a hurdle. But at the end of the day, my out of pocket cost will be less than $500 (Two unit condo insulated for approx. $4000, cost after rebate approx. $1000, cost per unit approx. $500). I figure I saved between $75 and $100 on my January bill.

Regarding wait lists, the insulating is done by approved contractors, and there's a ton of them. When I had the job done in November, there was no wait.

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?