This is the kind of news those in Chicago want to hear as our chilly winter draws ever closer. An oversupply, coupled with a weakened demand, has caused natural gas prices - the primary heating fuel in Chicago and across Northern Illinois - to take a tumble!
As the owner of a nearly-80-year old, fuel-inefficient Chicago Style Bungalow on the Northwest Side of a usually cold, windy city, my wife, Sue, and I know all about high prices for the natural gas we need to heat our older home each winter.
Three years ago, during several particularly cold winter months, our monthly heating bills topped $500!
During those cold years, our pain was mirrored across the country, whether homeowners heated with natural gas, fuel oil, or electricity.
But now, a weak economy, coupled with a mild summer, have driven down Natural Gas Prices in Northern Illinois by nearly two-thirds of what they were just over a year ago, as reported in a story by Mike Hughlett in the September 19th Edition of The Chicago Tribune.
In the Suburbs of Chicago, customers of Nicor Gas are currently paying 33 cents per therm of natural gas, down from 84 cents one year ago. In Chicago itself, customers of People's Gas, which serves city residents, and North Shore Gas, serving select suburbs, will see bills about 28% lower this year over 2008. That's an average annual savings of roughly $500, according to Bonnie Johnson of Peoples Energy.
On the Budget Plan, where your gas bill is smoothed into equal monthly installments over the year? You'll save money, too! Nicor says its suburban customers' bills are reviewed three times each year, and adjusted each period to account for falling or rising natural gas price trends.
The cool Chicago summer of 2009 has resulted in less use of air conditioning. Many nearby electric power plants are fueled by natural gas-powered generators, which have seen far less demand this year. Recessionary economic times have played a key role as well, dampening industrial demand for natural gas.
Alongside all of this, improved production technology has considerably improved efficiency and productivity among natural gas providers.
Big gas companies like Nicor and Peoples Gas generally purchase and stockpile natural gas for winter use during the summer, when demand, and seasonal pricing, is often at its lowest point. This year, each utility has been fortunate to purchased at the bottom of the price cycle.
The only variable in gas price stability this coming winter in Chicago? How cold the average temperatures will be! A cold winter would considerably increase demand, draw down supply stockpiles, and result in a price increase later on.
For now, however - enjoy the savings!
Please read our post today via BlogChicagoHomes.com.
DEAN & DEAN'S TEAM CHICAGO
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