Consumers should expect gas bills to increase when suppliers lose $ 3.4 billion due to cooling

Houston Texas Natural Gas Consumers Predict Texas Natural Gas Consumers Will Increase Their Energy Bills Next Year The storm.

This comes after Governor Greg Abbott signed HB 1520 in June, which allowed gas suppliers, who had suffered heavy losses during the storm, to “bond and pay fees and assessments” according to the documents. Gas wholesalers.

A.D. On November 10, the Texas Railways Commission unanimously approved eight gas companies to work with the Texas Public Finance Authority to make up for lost money caused by Hurricane Katrina.

The bitter cold weather since February is hard to forget. Many Houston residents have lost power and heat. Ramana Krishnamorti, chief energy officer at the University of Houston, has since analyzed energy supply and demand.

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During that time, the supply of natural gas decreased and demand increased, according to Krishnaamoti.

According to Krishnaamoti, wholesale distributors were selling natural gas for millions of BTUs for $ 400, or about $ 3 to $ 5 per unit. As a result, Krishna Moorti gas suppliers – or “middle men” at the time – agreed at an affordable price to continue the service. However, as with any transaction, bills must be paid, and that is where consumers stay with the wallet.

Krishnaamorti said: “You could have reimbursed those costs to the taxpayers or to customers like you and you.

Crescendo is another consumer of free market system, supply and demand and capitalism. In this case, the consumer takes the plunge, the wholesale distributor makes a big profit, and the consumer seeks help elsewhere for that cost or loss. Krishna Morti said the customers had left the bag.

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“Otherwise, the companies in the middle of the price chain would have gone bankrupt,” says Krishna Murtti. “One of the two places could have paid for it. The state could have said, ‘We will pay it, and we will repay that tax by raising it or giving it directly to consumers in the next 20 to 30 years.'”

RRC comments HB 1520 is intended to help make costs more predictable.

“The bonds provide a low-cost source of financing for natural gas suppliers, and enable utilities to recoup unsustainable gas costs in customer accounts over a longer period of time,” said an RRC representative.

The commission has 90 days to submit a bond to the Texas Public Finance Authority. TPFA then has 180 days to start giving them.

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Krishna Moorti said natural gas consumers should expect an increase of about $ 2-10 and that the increase will take effect by the middle of next year, with full legal effect in 2023.

This is a full statement from the Texas Railways Commission.

“During the Winter Hurricane Yuri, domestic gas distribution companies (LDCs) incurred significant natural gas costs when purchasing the necessary natural gas supply to maintain service to their customers. He passed the House Bill 1520, realizing that they could see a dramatic increase in their monthly bills.

“The bill instructs the RRC and the Texas Public Finance Authority to work together to develop a customer relief bond. The bonds provide low-cost financing for gas utilities to meet the higher obligations of natural gas suppliers, and allow utilities to recoup unsustainable gas costs in customer accounts over a longer period of time than in a single billing statement.

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“The total amount of collateral is close to $ 3.4 billion, which is on page 6 of the attached document for each LDC amount. An LDC can provide you with information about the impact of a customer receipt.

“The HB 1520 is required to be issued no later than 90 days after last week’s vote, but it is expected to be issued before the 90-day deadline.”

Copyright 2021 by KPRC Click2Houston – All rights reserved.

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