Natural Gas Prices Maintain Fourteen-Year High

CHATTANOOGA (WDEF) — The TVA says natural gas prices are at a fourteen year high.

In June, the price of natural gas was one hundred and forty-one percent higher than it was last year.

“This summer we’re kind of seeing a perfect storm of hot weather, which is resulting in record demand for electricity; we’re seeing economic growth; and also high natural gas prices. High natural gas prices are a result of that economic growth and the demand also for electricity,” said Scott Fiedler of the TVA.

You might have noticed the price increase reflected in your electric bill.

The TVA’s effective power rate is up eleven percent this year, but that’s much lower than rates in other parts of the country.

“The good thing about the TVA system is we have a diverse portfolio that’s not highly focused on fossil fuels, which is effected by global events that we’re seeing now. We have a mix of nuclear, hydro, wind, solar, natural gas, and coal,” said Fiedler.

The T-V-A says most of your power bill simply comes down to usage.

And there are small things you can do to reduce costs as natural gas skyrockets.

“You can do something as simple as turn your air conditioner up one or two degrees. Each degree you turn it up saves about three
percent on your power bill,” Fiedler said.