Some Chattanooga area homeowners could see a steep increase in heating bills this winter as natural gas and other fossil fuel prices jump.
Chattanooga Gas, which supplies natural gas to about 69,000 customers in Hamilton and Bradley counties, projects its typical residential customer will pay about $27 more a month during the upcoming winter season than a year ago.
Company spokeswoman Robin Gray said gas supply costs are up 48%, even with the gas utility’s purchasing natural gas supplies across a diverse mix of production areas and trading hubs.
A hike that steep won’t affect the whole region. In fact, about 70% of Chattanooga households heat with electric furnaces and heat pumps that are less susceptible to volatile fuel prices.
The Tennessee Valley Authority, which delivers electricity at prices below the U.S. average, expects higher fossil fuel prices will boost its fuel cost adjustment this winter and likely keep rates 5% to 8% higher than last winter.