Enumclaw raises natural gas prices

The city had to spend more money than expected to keep locals warm last winter; prices have to be raised now to refresh reserves

The stinky gas bill is rising.

Beginning July 1, there was a 28% increase in the volumetric rate per therm on Enumclaw resident’s gas bill. The fixed monthly service charge and the Climate Commitment Act (CCA) charge per therm for all gas consumed, the other two components of the bill rates, will not change.

Enumclaw usually hedges — or buys natural gas in advance at a lower price — about 75% of its expected gas load each winter season.

Searcy said how much gas they buy at market price depends on how cold of a winter it is. The city predicted a cold winter, and for the cold to come quicker than usual, so Enumclaw hedged an additional 10% and then had to buy the rest of the gas at market prices to keep up with demand, said City Administrator Chris Searcy.

“Our hedged gas price was $3.49 per dekatherm (Dth), while market priced gas for December and January were $14.98/Dth and $45.25/Dth, respectively,” Searcy said. “The utility will spend about $1.4 million in cash reserves in 2023 as a result, and the rate increase is necessary to replenish our reserves.”

Customers can expect to pay more depending on how many therms they use, and the season.

“In summer, a customer using 20 therms per month would pay an additional $5.28 per month” with the increase, Searcy said, “while in winter, a customer using 100 therms would pay an additional $26.44 per month.”

The fixed service charge of $11.63 will not change, and the CCA charge will not change.

Gas prices in January were about twelve times higher than the price that Enumclaw bought their gas for in advance for last winter.

Additionally, the fixed monthly charge is expected to increase 2.5% in January 2024. A CCA charge increase is also expected, but the city doesn’t know how much that will be.

Finally, another volumetric rate increase is expected in November 2024, Searcy said.

He added that Plateau Outreach Ministries in Enumclaw and the Multi-Service Center in Federal way are two organizations said can help those struggling to pay their utility bill.

Tags: