Extreme cold and increased demands forces WMGLD to increase its Cost of Gas Adjustment Charge for natural gas

The bitter cold that has enveloped much of the nation, including New England, over the past two months has far exceeded 30-year averages, causing gas consumption and gas prices to rise. This increase in demand throughout the nation, coupled with New England’s reliance on natural gas as its primary fuel for electric generation, has further driven up demand in our region.    

As a result of these market-driven increases, the Wakefield Gas and Light Department has been forced to increase its Cost of Gas Adjustment charge for the remainder of the heating season by approximately 20%.

WMGLD General Manager Pete Dion announced the adjustments to the fuel charge on Wednesday, citing the dramatic increases in the cost of gas from the suppliers over the past two months and the forecast for these costs to remain the same for the remainder of the winter. The change will increase the monthly heating cost for the typical gas heating customer by $60 per month for the last few months of the winter, based on their average usage.   

“We work hard to maintain consistency in the rates as much as possible and we have been able to hold rates stable for well over two years,” said Dion. 

 According to the General Manager, the larger investor owned utilities increased their rates by 15% at the beginning of the 2013-2014 heating season.

“These larger utilities will likely be back before the Department of Public Utilities in the spring to seek further adjustments based on the increased costs over the winter,” he added. “WMGLD held off until now to monitor the markets and determine the direction the prices would take based on the type of winter we experienced. Unfortunately, this winter has been colder than the average winter and the costs have climbed dramatically rather than fallen over the past two months.”

“We will continue to monitor the markets during the next few months and should be able to drop the Cost of Gas charge at the end of the heating season,” Dion continued. “We will continue to monitor and manage costs to the best of our ability throughout the warmer months as we plan for the next heating season. This year we have been affected by the unforeseen and difficult combination of extreme cold and a dramatic increase in demand. As always, we will work to provide the highest quality service at the lowest possible price.”

The General Manager also reminds customers to conserve energy whenever possible to ensure that costs are manageable during the remainder of the heating season. In addition, WMGLD customers can obtain information about energy assistance programs, including the Low Income Heating Energy Assistance Program (LIHEAP) and the Good Neighbor Energy Fund, and about the WMGLD budget-billing program by contacting the WMGLD at 781-246-6363.