Echoing a price shock warning that many utilities — electric and gas — were issuing across the country last week, Syracuse, NY-based Niagara Mohawk said higher commodity prices could result in its natural gas customers seeing a 35% increase in heating bills this winter.

The National Grid subsidiary provides electric service to approximately 1.5 million customers and natural gas service to approximately 560,000 customers in upstate New York. The projected increase is based on average usage for a typical winter. Market prices, a customer’s natural gas usage and weather will ultimately determine the actual bill impacts.

“While Niagara Mohawk plays no role in setting the market price of natural gas and has held delivery costs stable since 1996, we feel an obligation to caution our customers of the expected higher bills,” said Joseph T. Ash, Jr., Niagara Mohawk’s vice president of Energy Supply, Pricing and Regulatory Proceedings. He noted that Niagara Mohawk expects supplies to be adequate and emphasized the company passes the cost of the commodity directly on to customers without markup. He added that delivery prices and transportation costs will remain stable this winter

“Because there are so many variables, we can’t precisely predict what will happen to bills this winter,” he added. “We can only apply what we know now to give customers our best estimate. In addition, we’ll keep customers informed if the situation changes.”

At last year’s commodity prices, Niagara Mohawk said a typical residential customer who would ordinarily use 952 therms during a normal heating season (November to April) would have paid about $1,020 over the six-month period. At this winter’s projected commodity prices, the same amount of usage would cost $1,380.

Delivery prices reflect the costs to bring the gas directly to customers, maintain the local gas network and provide emergency response and customer service. Those costs, directly within Niagara Mohawk’s control, have been unchanged for heating customers since 1996 and will remain so during the upcoming winter. Transportation charges reflect the cost of moving the gas from where it’s produced to Niagara Mohawk’s service area. Those prices also have been stable the last few years.

“In light of the higher natural gas commodity costs, we want to help our customers prepare for winter by providing them with specific recommendations that can conserve energy and mitigate bill increases,” Ash said. He urged conservation and the use of high efficiency appliances, but also outlined billing options and special assistance programs. Customers can visit www.niagaramohawk.com for more information.

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