Hampton, North Hampton to Pay More for Gas Heat This Winter

Heating bills are on the rise for natural gas customers in New Hampshire.

The Associated Press, citing a Concord Monitor story, reported this week that the state's Public Utilities Commission approved 10 percent rate increases for both Liberty Utilities and Northern Utilities.

Alec O'Meara, a spokesman for Northern Utilities, said the increases are due to fact that the price of natural gas increases when demand peaks in the winter months.

"Every six months, natural gas utilities are required to go out to bid and secure the current market rate for the natural gas they provide to customers," he said in an email. "Whatever the market rate for natural gas is during this period then becomes part of customer bills."

Over this new six month winter "peak" period, O'Meara said the average Northern Utilities customer will spend about $13.47 more a month on heating costs, an increase of about 9.8 percent compared to last winter. 

"This change reflects an increase in the market value of natural gas from last year, when natural gas costs were at or around record lows," he said. "Natural gas is still running at about half the cost of oil for heating homes through winter."

Liberty Utilities did not return an email seeking comment on its rate hike.

Northern Utilities has 29,000 customers, including towns like East Kingston, Exeter, Greenland, Hampton, Hampton Falls, Kensington, Newington, North Hampton, Portsmouth, Salem, Seabrook and Stratham.

Liberty Utilities provides natural gas to about 87,000 customers including towns like Amherst, Bedford, Concord, Derry, Hudson, Londonderry, Merrimack, Milford and Nashua.