Commercial Natural Gas Prices FAQ
What’s been happening with natural gas prices?
Natural gas is traded as a commodity on the New York Mercantile Exchange (NYMEX). Recently, we have seen historically low prices for natural gas due to ample supply and a warmer-than-normal winter nationwide.
Natural gas prices can fluctuate based on supply and demand. In 2008, prices reached record high levels. Since that time, natural gas demand has decreased and new natural gas sources have come online, which increased supplies. In early 2012, NYMEX natural gas prices fell to lows not seen since 2002.
Why are natural gas prices often unpredictable?
Natural gas is a worldwide commodity. Though natural gas prices currently are low, prices could increase due to:
- Tight supplies caused by natural disasters or other unexpected events.
- Global tensions.
- High cost of competing fuels such as oil and propane.
- Weather, such as extreme cold weather or hurricanes that may damage gas drilling or refining facilities.
- Increasing use of natural gas to replace coal in manufacturing electricity.
- Increasing international demand for natural gas.
How can MGE help customers manage costs?
We encourage you to begin preparing for the colder months ahead. Conserving energy and planning your energy budget can help:
- Visit MGE Business Services for:
- Energy-saving tips
- Information about our specialized services to increase energy efficiency in your business
- Information how to track your business energy use online
- Call the Business Help Line at (608) 252-7007 to get answers to specific questions
- If you get behind on your energy bills, contact MGE at (608) 252-7007 as soon as possible to set up a payment plan
For more information for industry sources: