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Senator Tina Smith (D-MN) calls for federal inquiries into possible natural gas price hikes in areas affected by severe winter storms that caused power outages in Texas and other large parts of the country .
Why is this important: In a letter to regulators sent on Saturday, Smith said spot prices for natural gas had risen more than 100 times their usual levels, raising utility costs for people in affected areas.
- Smith said the price hikes threatened “the financial stability of some utilities which do not have sufficient cash reserves to cover their short-term costs in this extraordinary event.”
- “A public report should detail what happened, make recommendations to avoid such problems in the future, and determine whether laws have been broken,” Smith said.
Enlarge: Extreme weather conditions have increased demand for electricity by an unprecedented amount, while utilities in states like Texas have been shut down due to snow.
- Winfield, Kansas, will likely pay $ 10 million for natural gas for the last week alone, according to an interview with city manager Taggart Wall on KWCH-TV. He added that residential customers could expect to pay around $ 2,500 this month.
- Officials in Morton, Ill., Reported gasoline prices at nearly $ 225 per unit this week, although they normally sell for around $ 3.
- Natural gas prices in Oklahoma have hit a record high of $ 600 per million British thermal units.
The other side: American Gas Association spokesman Jake Rubin said AP’s utilities use long-term contracts to ensure sufficient supply at an affordable price.
- “Spot prices have climbed in some areas due to spikes in demand, families and businesses that use natural gas have been protected from higher prices through careful planning of their utilities.”
What’s up: The Texas utilities regulator said on Saturday it had opened an investigation “into the factors which, combined with devastating winter conditions, have disrupted the flow of electricity to millions of homes in Texas.”
Go further: Biden declares major disaster in Texas after winter storms
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