Energy costs are rising – Electricity price remains stable for CCEC members
Editorial by: Marshal Albright, Cass County Electric president & CEO
In North Dakota, the cost of energy matters. We use substantially more energy per capita than the average U.S citizen with our cold winters and long-distance travel. The cost of energy is increasing and will impact our membership. The information below compares energy prices one year ago, the current price, and the 2021/2022 winter forecast.
Home heating
Expect to see your home heating bills much higher this winter compared to previous winters. Natural gas prices are currently more than double the cost compared to this time last year. With energy demand high and production stable, natural gas prices are forecasted to remain high throughout the winter. Propane prices have more than doubled over last year. Fortunately, the cost of electricity from Cass County Electric will stay stable this winter. For members that have off-peak electric heat, this is excellent news! (source – Minnkota Power Cooperative spot market price check and www.tradingeconomics.com)
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Natural gas (wholesale price)
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Past - 12 months ago $2.5/MMBtu
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Current - Oct $6.275/MMBbtu
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Forecast - $5-6/ MMBtu (about double the cost of last year)
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Propane (retail price)
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Past - 12 months ago $1.09/gallon
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Current - Oct $1.79/gallon
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Winter Forecast - $1.75-2.00/gallon
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Off-peak electric heat
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Past - $.055/kWh
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Current - $.056/kWh
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Winter forecast - $.056/kWh
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Transportation fuels
Global demand for transportation fuels is increasing, and production is lagging, causing inflated prices at the pump. Industry reports are indicating crude oil to reach $100/gallon. Inflated oil prices will directly affect the cost of goods and services in the U.S. (source: EIA.gov)
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Diesel fuel
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Past - 12 months ago $2.29/gallon
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Current - Oct $3.38/gallon
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Gasoline
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Past - 12 months ago $2.12/gallon
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Current - Oct $3.18/gallon
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Power generation fuels
When the price of commodities increase, like natural gas has over the summer, so does the cost of electricity when generated by natural gas. Last year at this time, wholesale power market prices were under $0.02 kWh In early October, wholesale power market prices averaged $0.06/kWh. Over this past summer, wholesale electricity prices were more than double compared to last year. Fortunately, Cass County Electric Cooperative and Minnkota Power Cooperative are not directly impacted by the natural gas price increases because most of our power supply comes from wind energy and coal-fired power generation. We recently had a coal plant off-line for scheduled maintenance, and Minnkota had to rely on market purchases to fill any generation shortfalls. When regional wind generation was low, market prices spiked to more than $0.10/kWh. The volatility of wholesale power markets has and will continue to increase as more baseload power is forced to go off-line.
How will a higher price energy impact Cass County Electric Members?
Members will have to spend more on energy to heat their homes and transportation, but the good news is that the price you pay for electricity is forecasted to remain stable. Because of high power market prices, members will likely see more use of our energy management program (off-peak heating, water heating, etc.) For members that use off-peak heating, expect more load control this winter.