Residential Natural Gas Prices FAQ
- How do natural gas prices compare to other home heating fuels?
- How are natural gas prices determined?
- How can customers save on their natural gas bills?
- For more information
Home heating oil and propane (LP gas) prices have been at record levels during recent years. Although prices have fallen from their mid-2008 peak levels, they have been on the rise. Natural gas prices have fallen more than 70% from their mid-2008 peak and continue to be lower per therm than fuel oil and LP prices in the region.
Average local prices per therm
as of December 2013
|LP gas (leased tank):||$1.80|
|LP gas (owned tank):||$1.77|
|Natural gas (MGE rates and charges):||$0.80|
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.
Use our Home Heating Fuels calculator to estimate your potential cost savings when switching from fuel oil or LP gas to natural gas.
How can customers save on their natural gas bills?
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.
How are natural gas prices determined?
Natural gas is traded as a commodity on the New York Mercantile Exchange (NYMEX). As with any commodity, prices can fluctuate depending on supply and demand and on trading activity.