Arctic Event Impact – City of Potosi Received Notice Their Natural Gas Costs Up From Winter Storm

April 02, 2021

The City of Potosi recently received notice from their Natural Gas supplier that costs and rates during the recent Arctic freeze in February were in and the cold had directly effected the gas charges and supply.

Symmetry, the City of Potosi’s natural gas retail marketer, sent the City a letter explaining the disruption of service, the cost fluctuations and the resulting additional charges to the City.

In the letter to the City, Symmetry said, “as a result of the extremely low temperatures, physical gas and power infrastructure was severely impaired. Specifically, well-head freeze-offs occurred, and gas processing plants and pipelines failed. This resulted in reduced natural gas supply and limited ability to distribute and deliver natural gas on the system. At the same time, demand for natural gas was higher than normal due to increased heating demand during the extremely cold weather.”

Symmetry went on to say, “This considerable increase in demand, coupled with a severe reduction in supply, resulted in extremely high natural gas prices in almost every market we serve. Importantly, this was a market-wide event and virtually all industry participants were impacted - not just Symmetry.”

The result of the winter storm, unlike any that had been seen in years, was higher prices for everyone across the board.

“The City of Potosi is preparing to pay the February gas bill and wants to let our customers know that we are doing everything we can to ease the additional charges for our customers,” said Brenda Smith, City Clerk.

The City has set in place a plan to pay $100,000 out of reserve on the gas bill and spread the additional cost to customers over the next twelve months so that no one will be significantly impacted by one large bill from the Arctic event.

In a meeting held at City Hall on Thursday, March 25th the City Council approved Ordinance 1183 that amended Section 25-44 (a) code of ordinances for the City relating to interruptible user rates.

The amended ordinance says: (a) That the Natural Gas rate shall be based upon the quantity of natural gas used on the premises furnished with the gas service according to the following schedule of monthly charges above the cost to the City at the city gate.

(1) Potosi Natural Gas Rate Schedule applicable to all Residential Customers: For the first 500 cubic feet $16.43; Next 19,500 cubic feet $4.23 plus gate price per 1000 cu. ft.; All usage greater than 20,000 cubic feet $3.79 plus gate price per 1000 cu. ft.

(2) Potosi Natural Gas Rate Schedule to all Commercial Customers: For the first 500 cubic feet $22.43; Next 19,500 cubic feet $4.34 plus gate price per 1000 cu. ft.; All usage greater than 20,000 cubic feet $4.13 plus gate price per 1000 cu. ft.

(3) Potosi Natural Gas Rate Schedule applicable to all Industrial Interruptible Service: $60.00 Facility charge plus $2.68 plus gate price cost per 1000 cu. ft.

The City of Potosi recognizes the hardships that the community has faced through the pandemic and the challenges that have been placed on the local economy. With those factors in mind, the City decided to ‘spread the cost’ over the next 12 months instead of a lump sum to the customer.

While the cost is beyond the City’s control, the City was pleased that the local service did stay up and in place during the severe temperatures for the community and its customers. Many areas around the nation lost power, heat and services due to the Winter storm.

The City of Potosi again thanks the community for the support that is always displayed for fellow residents and businesses. The natural gas service has benefitted many in the community for years and continues to be a positive offering by the City.