How do natural gas prices compare to other home heating fuels?		What can customers do about high natural gas prices?
	What can I do if I am having trouble paying my bill?		Why are natural gas prices so volatile this year?
	What prices can we expect for the upcoming heating season?		For more information

How do natural gas prices compare to other home heating fuels?

Home heating oil and propane (LP gas) prices have been at record levels during recent years, although they have fallen significantly from their mid-2008 peak levels. Market prices have been climbing recently as an extended cold snap throughout much of the continental U.S. has increased demand. Perceptions of pending economic recovery also may be contributing to an uptick in prices overall. Natural gas prices continue to be lower per therm than fuel oil and LP prices in the region, however.

For Reference: 1 therm = 100,000 Btu (British thermal unit). One Btu is the amount of heat energy required to raise the temperature of one pound of water one degree Fahrenheit. The average MGE residential gas customer uses about 840 therms per year.

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What can customers do about high natural gas prices?

Use energy wisely. You can reduce the amount of natural gas you use and save money.

• Keep your thermostat at 68°F. Lower it at night and when you're away from home (55° lowest setting). You save 1% for every 1° decrease over eight hours. Warmer settings are recommended for homes with the elderly and infants. With a setback thermostat, programming different settings becomes a convenient way to save energy without sacrificing comfort.
• Keep registers and cold-air returns clear of furniture and drapes.
• Close storm windows and latch them tight. Replace missing storm windows or install plastic film. Close drapes at night to keep heat in.
• Put an interior cover on wall air conditioner units in the winter. Remove or cover window air conditioners.
• Set water heater temperatures at 120°F to 125°F and install water-saving showerheads and aerators.
• Fix water leaks. Wash clothes in cold water.
• Call the MGE Home Energy Line at (608) 252-7117 with questions or for other energy-saving ideas.

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What can I do if I am having trouble paying my bill?

Please call us at (608) 252-7222 or toll free at 1-800-245-1125. We are ready to work with you.

• MGE's Budget Payment Plan spreads out winter heating costs over a 12-month period, leveling monthly energy bills and making it easier to factor energy costs into your household budget.
• If you can't meet your energy bills, a Deferred Payment Agreement allows customers to pay past-due bills in separate installments.
• Energy assistance is available for households of qualifying income who have difficulty meeting their heating costs.

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Why are natural gas prices so volatile this year?

Natural gas is a worldwide commodity. The market’s volatility is due to:

• Tighter supplies.
• Global tensions.
• High cost of competing fuels such as oil and propane.
• Decreasing natural gas supplies from Canada.
• Weather, such as extreme cold weather or hurricanes that may damage gas drilling or refining facilities.
• Increasing international demand for natural gas.

What prices can we expect for the upcoming heating season?

No one can predict where natural gas prices may head due to the volatility. Natural gas prices can be quickly affected by hurricanes, cold weather, global tensions and the oil market.

For more information
The Energy Information Administration (U.S. Department of Energy)
The Natural Gas Supply Association
American Gas Association
Residential - Understanding Natural Gas Price Volatility [PDF - 168 KB]