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Utility boards warn of higher-than-normal natural gas, propane prices this winter

The Department of Energy warns households that primarily heat homes with natural gas will spend 30 percent more than average.

NEWPORT, Tenn. — Some East Tennessee utility boards said to expect a double-digit dollar increase on heating bills this winter due to higher natural gas and propane prices. 

At the Jefferson-Cocke Co. Utility District, General Manager Tommy Bible said wholesale prices doubled last year's November outlook and reached levels not seen in seven years. 

"You have to go all the way back to the polar vortex that took place back in the winter of 2014 to have prices this high in our area," he said.

It's a nationwide trend. The Department of Energy estimates people who use propane to heat their homes will pay 50 percent more this year. It said natural gas customers should expect to pay a full 30 percent above what they're used to. 

Bible said damage caused by Hurricane Ida, high overseas demand and a cooler than average start to November all contribute to the higher prices.

In Knox County, KUB estimates a 19 percent increase in natural gas costs—about $16 on average per customer. 

 "KUB has had no electric or natural gas rate increases since 2019 that are currently part of  customer bills – the projected change in rates is due to market demand for energy which has increased," spokesperson Darrin Rhines said. 

Rhines said the cost of electricity is projected to increase too, by about 5 percent over 2020. 

"The biggest user typically in the home is heating, so if customers can lower their thermostat to as comfortably low as you possibly can, dress in layers, lower your hot water heater," Rhines said.

KUB has programs available to help people who are concerned they won't be able to pay. 

In Newport, Bible said his utility had just completed its "early fill up" program to get customers ready for cooler weather. He advised people go ahead and fill up their propane tanks now--even with the higher prices. 

"Hopefully we’ll have a mild winter and pressure on prices will be reduced," he said. 

 

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