Buffalo, N.Y. (WBEN) - With bitter cold temperatures continuing to impact the Western New York region, it could result in quite an increase in energy usage to keep homes and businesses warm. As a result, it could also mean an increase in your energy bill this month.
NYSEG's Mike Baggerman says it's typical to see supply costs increase whenever the thermometer hits extreme cold temperatures.
"Anytime there's periods of extreme temperatures - be it the coldest temperatures that we're seeing here in the winter, or if we're seeing the hot summer - that typically means an increase in energy consumption," said Baggerman in an interview with WBEN.
Baggerman stresses how a colder winter means more power is going to be required to maintain a home or business at a safe temperature many are used to. And with that greater demand, as a whole, it will only drive up prices on the supply market.
"I think it's so important for customers of ours to know that there is a difference between supply and delivery," Baggerman said. "For example, gas supply costs are up 20% this year, and frankly, supply costs have doubled since 2020. Meanwhile, the delivery rate on your NYSEG bill, that hasn't changed since May of last year. So whenever the cold weather hits, the demand increases, and therefore supply costs, especially this year, have been skyrocketing."
NOCO president and COO Michael Casciano agrees, saying it's simply a supply and demand issue when it comes to natural gas.
"When we have long stretches of cold, the way we've had it - unusual cold for long stretches of time - the whole system is using more natural gas than they normally would," said Casciano with WBEN. "Then when you couple that with the storm that has gone across from the South Central portion of the United States up Northeast and then down through the Southeast and these temperatures are much, much lower than normal, the entire country is using more natural gas than it normally would. ... There's simply is not enough natural gas to meet the demands for this sustainable storm in Western New York."
Casciano notes it hits even harder when in New York, 49% of all electricity comes from natural gas.
"From a forecasting [standpoint], what is it going to do to the consumer and to the businesses going forward? You can expect over the next two or three months much higher utility bills, all tracing back to this very long period of very cold temperatures.," Casciano said.
He adds energy bills this month could be 15%-to-20% higher, and in some cases - depending on how well a home is insulated and maintains the heat - it could be even higher.
One thing NYSEG does to try and help customers in times like these is hedge energy, meaning purchasing it in bulk.
"Which means it ends up being a lower cost for consumers," Baggerman noted.
NYSEG believes in greater transparency, and how being open to Western New Yorkers is only going to help customers understand what's driving some affordability concerns.
"You talk about the unregulated energy suppliers and state mandated fees, which together can account for more than half of a typical customer's bill. These supply charges have nothing to do with the investments that NYSEG is doing in the polls, the wires and the people that keep New York's lights on and homes warm," Baggerman said. "We look forward to continuing to educate customers on all components that contribute to the charges and the fee that are found on customers bill."
What can people do to try and use less energy this winter while staying warm and lowering energy costs? Casciano says there are a few simple things that can make a difference.
"Just lowering your temperature on your thermostat by a couple degrees will have a profound impact on your overall energy use. You just use less, keep it a little bit cooler in your house than you normally would," Casciano noted. "And with that, installing a programmable thermostat is also very tactical. You can get these at Lowes and Home Depot, and we sell them at NOCO as well, where it actually is a smart thermostat which will track the behaviors in the home. It knows when you're there, it knows when you're not there. You can certainly raise and lower the temperature using your phone, but over time, it is tracking. Just like an email will finish your sentence, it will change your temperature based on what it suspects is best for the home. That's a really practical way of lowering your energy use.
"All of the fans in your home, if you have them running, have them running clockwise fashion to keep that warm air down, to push that warm air downward. And then when you go to bed at night, unplug your appliances where and when you can. That's just a simple thing that will have you using less overall energy."
A couple of other different ways that can help lower energy usage for customers is by having a regular scheduled filter replacement for your furnace, or switching to alternative options for your home like a geothermal system or solar.
Baggerman also points to options available from NYSEG that can help customers with their energy bill.
"HEAP, emergency HEAP, EAP, the new Enhanced Energy Affordability Program (EEAP), that's something new that's out there as well. There's a lot of resources people can get to get help with their bill by visiting NYSEG.com," he added.
"There's things that customers can use to manage their energy use, such as Energy Manager. It's something that's available for customers through their account at NYSEG.com. You can track your energy use down to the hour, see how your use compares to similar homes. You may even get tips to see how you can reduce your energy consumption. We certainly encourage customers to sign up for alerts as well to track your energy use, to set up individual targets, get notified of big usage shifts. And just, in general, stay informed during outages and winter storms. Those are a couple additional resources that are available to help our customers."