THATCHER — Thatcher residents can expect higher utility bills this winter.
That was the message coming out of Tuesday’s Town Council meeting, where Town Manager Heath Brown explained that natural gas costs have increased as much as 800 percent between Nov. 1 and Dec. 13.
There are three factors contributing to the increasing cost of natural gas — colder than normal temperatures across much of the Western region this fall; natural gas storage down about 20 percent; and a rupture of the Kinder Morgan/El Paso Natural Gas line last August, limiting the transport of natural gas between California and Arizona.
The result has been a recent $200,000 deficit between the town’s purchasing of power and revenue from consumers.
Due to those increased costs, and an anticipated $900,000 deficit for the year, the council approved a 10 percent increase in electric rates last July, and staff will recommend another rate hike in January.
Staff is also asking the council to consider “hedging” natural gas acquisition — locking in a fixed price regardless of where the price goes in the open market. The advantage is to the town when prices climb — as they have thus far and expected to continue during the winter months — but could cost the town more if prices suddenly drop.
To help reduce acquisition costs in the short term, Brown said the town is asking residents to conserve where possible.
“Lowering your thermostat in your home — let temperatures be a little cooler — lighting, doing whatever you can to use less electricity,” Brown said. “The town is going to lose money on all of the electricity we sell, so the less we sell the less we will lose.”
