After conducting its own research, the New York State Public Service Commission (NYPSC) said gas supplies are “sufficient” to meet forecasted demands of New York State customers this winter and prices are expected to be lower than last winter.

“The outlook for natural gas customers in New York State this winter is good,” Commission Chairman Maureen O. Helmer said. “Local utilities that deliver natural gas to New Yorkers are well positioned to help ensure reliable supplies of the commodity.”

The commission said there are about three million customers who heat with natural gas, most of whom are residential. According to federal government estimates, approximately 50% of the households in the state use natural gas for heating purposes. Approximately 98% of the natural gas used by New York residents, businesses and industries comes from outside New York, primarily from the Gulf States and Alberta, Canada.

The NYPSC’s assessments are based on the monitoring of local distribution utilities and gas marketer actions to prepare for the winter. Throughout the year, the commission staff monitors gas supply portfolios, pipeline capacity, storage inventories, contract strategies and commodity pricing.

Staff’s monitoring of natural gas prices reveals that they have declined dramatically from last winter’s prices, which rose to a high of $10/Dth. Currently, the average price of natural gas at the Henry Hub for delivery this winter is $2.98/Dth, compared to an average price last winter of $6.55/Dth. The staff noted that the average price for natural gas this winter is expected to remain near the $3/Dth level, but warned it could change in response to changes in economic conditions and the severity of winter.

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