Salem Interim City Manager Annette Sola says the high January natural gas bills will not be repeating in February.
Several Salem residents complained about high bills in the public session of Monday night’s city council meeting, but after the meeting Sola explained it wasn’t a change in gas rates that caused the price surge seen on the bills.
“The biggest thing would be the sub zero temperatures we experienced. Even though they were for a short week, during that week gas traded at an all time high for the year so we saw larger increases than what the city purchased gas for. The rate increase itself which was approved through council a few months ago was a very small portion of the increase.”
Sola says they were forced to pay $33 per decatherm on the open market for excess gas during the extreme cold week, compared to prices that have now dropped to just $2 per decatherm with winter coming to an end.
Sola says unfortunately there isn’t a way to avoid the market swings during extreme weather swings.
“There really is not. Not with the way gas trades now in the open market. We do buy early in the season so we do have gas in storage. That is used first so all we are purchasing is the difference it takes to get from one to the other.”
Sola understands the bills are unaffordable to some on fixed income and she is encouraging those in that situation to pay what they can and the city will work with them on paying off their bills in the coming warmer months when bills will be lower. She emphasizes no one should have to choose being having to go without food to pay their city utility bill.
