Okla. Communities Asked To Conserve Natural Gas Due To Brief Spike In Spot Price

Citizens across Green Country said they are concerned about large increases in natural gas prices and how it could affect their bills. Experts say the spike could be a result of this week's winter weather and people using more gas for electricity and heat.  

Grove Municipal Services Authority in Grove, Oklahoma is responsible for supplying natural gas to area towns, including the city of Jay. A few days ago, Grove city leaders saw cash prices for natural gas skyrocket from $3 to $622 per unit – an increase over 20,000%. Therefore, the City of Grove has asked communities to help conserve energy as much as possible.  

Grove City Manager Bill Keefer said citizens will not run out of gas, but the city is having to buy gas at market value every day to meet the demand. Keefer said he will not know how much this increase will impact people’s bills until they look at transportation and energy costs.  

"Because of this unknown, we are buying gas over and above our nomination and guaranteed prices, and with the validity of what's going on, we want to make sure we try and keep that down as low as possible," Keefer explained. 

Meanwhile some businesses, like Sudz N’ Dudz laundromat, was asked to shut down temporarily because they use a lot of natural gas to operate.  

“Laundromats cannot operate on $622 a dekatherm. That would make our gas prices so high that it wouldn’t even be worth opening. We are just worried about our customers,” said employee Michelle Tyner.

News on 6 reached out to both the Oklahoma Cooperation Commission and Oklahoma Attorney General Hunter’s Office. Attorney General Hunter's press secretary, Alex Gerszewski, said his office is aware of the issue and they are looking into the legality of the price increase, and if this is a result of price gouging. 

Hunter’s office also said they have gotten complaints from towns across the state and even other states.