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Factors Impacting Gas Cost

Factors Impacting Gas Cost

This year, natural gas market prices are higher based on many factors, such as the economic recovery during COVID-19, increased natural gas demand from last winter, as well as slower than anticipated production.  While the recent global surge in natural gas prices may influence customer heating bills, it is important to note that, when Washington Gas files a gas supply charge with the local regulatory commission on a monthly basis, it is the price customers pay for gas purchased from Washington Gas, without any mark up or profit for the Company from its sale of natural gas. In short, Customers ultimately pays the same price that the company pays for the purchase of natural gas.

The U.S. natural gas market overall has an abundant supply, including Washington Gas. For example, Washington Gas maintains underground natural gas storage fields, which allow for the withdrawal of natural gas during peak demand to meet customer needs.  These steps help protect customers from overall market volatility, and enable the delivery of natural gas safely, reliably and affordably to customers as a top priority in winter months.


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