February Cold Could Cost CenterPoint Customers An Extra $394 Over Two Years

[progree]

https://minnesota.cbslocal.com/2021/03/17/february-cold-could-cost-centerpoint-customers-an-extra-394-over-two-years/
February Cold Could Cost CenterPoint Customers An Extra $394 Over Two Years, WCCO, 3/17/21

From Feb 12 thru Feb 22, Centerpoint paid out $500 million for natural gas

The extra cost comes to $354/customer, but spread over 2 years, plus interest, it comes to $394.

Average bills for residential customers are about $672 (equivalent to $56/mo X 12 months).

Nowhere does the article say whether the extra charges will be according to usage or not, or whether everyone will pay the same dollar surcharge, except for low income customers

It is subject to approval or revision by the Minnesota Public Utilities Commission

Excerpts

The natural gas price surge translates to an estimated extra $354 annually for Minnesota CenterPoint customers. Average bills for residential customers each year are about $672, the company said.

To offset the costs, CenterPoint pitched to the Minnesota Public Utilities Commission spreading out payments over two years to make it more affordable to customers. The extra charges would accrue interest for a total cost of $394 over 24 months.

The CenterPoint plan would spread out the costs to customers over two years with smaller payments in 2021 because of the pandemic. Starting in May through October, customers would see an extra $15.62 per month. That extra charge will decrease to $6.25 from November to April 2022, since bills are typically higher during the cold months.
The highest rate would come at an additional $31.25 from May to October 2022, and then from November 2022 to April 2023, the charge would be $12.50.

Those monthly amounts would cut in half for lower-income customers.

I'd guess that customers of other gas suppliers can expect something similar. It's not just a Texas story.

[OldBaldy1701E]

1. So

Considering that this winter has been a mild one by Minnesota standards, why was this an 'extra' cost?

[WhiskeyGrinder]

2. That's nothing. In Two Harbors, some people saw their February city bill go up almost 1,000 percent.