MINNEAPOLIS — Customers of CenterPoint Energy, the largest gas utility in Minnesota, can expect slightly lower rates this winter compared to last, as well as small refunds on natural gas bills in December.
The happy forecast from utilities, weather forecasters and the federal government rests largely on the expectation that record cold won’t repeat, the Star Tribune reported. Experts aren’t anticipating another polar vortex in the Upper Midwest this year, according to Brian Milne, energy editor for Schneider Electric, whose Minneapolis-based meteorology unit released the winter outlook Thursday.
Schneider Electric is predicting temperatures could be a few degrees below average, but “temperatures should not be as extremely cold as last year and as persistently cold,” Milne said. Cold snaps could still cause prices to increase on the natural gas market, but they probably won’t be as steep as last year, he said.
CenterPoint said last winter was the coldest in 60 years, with a record demand for heating that sparked a spike in natural gas prices. The utility serves 823,000 homes and businesses across the state.
Both CenterPoint and Xcel Energy, the second-largest gas company in Minnesota, are also anticipating winter weather that’s not quite as cold as last year. Xcel is predicting a 15 to 16 percent decrease in natural gas usage, according to Michael Boughner, the company’s director of gas supply.
Midwest customers will use 13 percent less natural gas this year, causing bills to be 8 percent lower, according to a recent forecast from the U.S. Energy Information Administration.
CenterPoint customers will receive an average refund of $11 on December bills, said company spokeswoman Rebecca Virden. Customers of Minnesota Energy Resources Corp., the third-largest gas utility in the state, can also expect a refund early next year and slightly lower interim charges than last year.
Xcel customers may see a 3.4 percent increase on January bills.
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