U.S. natural gas prices have climbed to their highest level since 2022, driven largely by January’s bitter cold and Winter Storm Fern. With subzero temperatures blanketing much of the country, demand for heating surged and your next gas bill may reflect it.
But what exactly are you paying for? And why does winter weather have such a big impact?
The major components of your natural gas bill are the price of the natural gas product and the price for the transportation and delivery of that natural gas.
Many Ohioans can choose who supplies their natural gas while local distribution companies ensure delivery to their homes and businesses.
If you decide not to choose a supplier, or if you are not part of a government aggregation, you’ll be on what is known as the standard choice offer (SCO). Columbia Gas of Ohio, Enbridge Gas Ohio and Centerpoint Energy Ohio, who serve approximately 3 million customers in Ohio, all use the SCO as their default rate. (Duke Energy of Ohio will be moving to a similar plan in April 2026.)
The SCO has two components:
- The price of the natural gas commodity, which is established by the NYMEX month-end price. This is the portion most affected by weather disruptions.
- The cost of delivering that natural gas to local distribution companies, which is known as the retail price adjustment.
Smaller gas companies use a plan known as the gas cost recovery (GCR) rate. Changes to the GCR rate can also be affected by fluctuations in natural gas prices. Read more about the GCR here.
What is the NYMEX?
The NYMEX, or New York Mercantile Exchange, functions like a stock market for commodities, such as coal, oil and gasoline. The market sets a daily national price for natural gas. The NYMEX month-end settlement price is an average of natural gas prices from the previous month.
How has that affected my bill?
Severe winter weather can affect the NYMEX: when cold weather hits, there is increased demand for heating, which can drive the price higher. Winter Storm Fern, as well as continued frigid temperatures, have increased the NYMEX price.
Cold weather can also threaten the supply of natural gas. Nearly 10% of the natural gas production was offline during the storm.
Although most natural gas production is back online, demand for heating is not expected to decrease anytime soon.
What can I do to reduce the impact?
You can sign up for the PUCO’s Rate Change Alerts, which send you an immediate text or email notification when your provider’s default rate changes.
If you are on the default rate, you can also compare natural gas prices from suppliers using the Apples to Apples chart on EnergyChoice.ohio.gov. Select your service provider and then use the rate on your bill to view options.
If you are a customer who has already switched suppliers, be sure to review your contract and mark your calendar for when the term length ends. Be aware of what happens once your supplier contract is over: will you be moved to a variable rate versus fixed?
If you’re struggling with your bills, assistance options may also be available depending on your income level. Keep in mind that some assistance programs, such as the Percentage of Income Payment Plan, do not allow participation in energy choice programs. Find a complete list of energy assistance programs here.
Finally, if you ever have any questions or concerns about your utility bill, please contact the PUCO Call Center either by phone at (800) 686-7826 or online here.
