November 08, 2023
While HG&E is proud to offer some of the lowest utility rates in the region, we understand that with inflation and the rising cost of everyday expenses even the slightest increase in energy rates can have a significant impact on our customers. As a community-owned utility, we work to stabilize charges as much as possible but there are components of each rate that are influenced by market conditions and the cost of fuel, which fall outside of HG&E's direct control.
There are many factors that impact the energy market, including escalating global demand for natural gas and shortages in domestic supply, as well as the impact of supply chain disruptions and volatile economic trends. Annual regional power market costs for 2024 are forecasted to be 52% higher than what was seen in 2023. According to ISO New England, 52% of electricity in the region is generated at natural gas facilities, however during winter months due to regional pipeline supply constraints, other costlier fuel sources are relied upon to meet demand which increases market costs. These factors continue to have a significant impact on natural gas costs which directly affect electric rates. Fortunately, HG&E is vertically integrated and owns electric transmission, distribution, and generation. These electric assets, along with our fuel procurement hedging strategy for natural gas, allow HG&E to strategically manage costs and insulate HG&E customers, to a degree, from some of the most volatile market conditions.
HG&E will continue to have some of the lowest rates in the region, but we want to prepare customers for winter adjustments and provide opportunities for conservation.
Estimated increases for the average residential customers:
- Electric - January 2024: Increase approximately 3%, $2.37/mo increase for customers using 500 kWh per month compared to June 2023.
- Natural Gas - November 2023: Winter rates are currently projected to be roughly 5% below last winter (~$14/mo).
Note: In the winter of 2022/23, HG&E’s residential gas rate was ~25% less expensive than peer
utilities for the average heating customer within the region and the electric rate was ~151% lower,
saving the average residential customer with gas and electric service ~$219/month.
These figures are estimates, based on current contracts and forecasting.
WAYS TO OFFSET ENERGY COSTS THIS WINTER
Manage your energy use and payments by taking advantage of HG&E's innovative energy efficiency programs, assistance, and rebates, including:
- PROMPT PAYMENT DISCOUNT: All customers who pay their bill in full within 15 days of receipt receive 10% discount on their bill.
- REBATES & INCENTIVES: HG&E offers various rebates and incentives to help you improve your energy efficiency and reduce your energy bills.
- RESIDENTIAL ENERGY CONSERVATION PROGRAM: Financial assistance at 0% interest for qualifying energy efficiency projects.
- FUEL ASSISTANCE: Programs available for qualifying households to assist with heating costs.
- PAYMENT PLAN: HG&E is happy to discuss a payment plan arrangement that works for you.
We know any increase to your bill is challenging and our team is here to help you throughout the winter heating season, contact us for more information.