Two Harbors Dealing With February Natural Gas Price Surge, But Not The Only City With Problem

TWO HARBORS, Minn. — Back in mid-February, many natural gas customers across America were slammed with surging prices as southern states like Texas and Oklahoma were hit with a historic winter storm.

That temporary surge in natural gas demand just became clear to residents in Two Harbors opening their utility bills this month.

It’s also happening to other natural gas customers across Minnesota, according to the MPUC and Minnesota state legislature.

“It was definitely a sticker shock because my bill has more than doubled for this month,” Katelyn Johnson, a homeowner in Two Harbors, said.

Some residents’ utility bills went from the $200-$300 range, to double, triple, or even quadruple that amount.

While the arctic blast blanketed southern states, Two Harbors was also in a deep freeze, with temperatures hitting an average low of -13.9°F to a high of 1.1°F for the week of February 11th to the 17th.

“This was a perfect storm, I mean you literally had record colds,” Two Harbors Mayor Chris Swanson said. “Our family’s bill was close to $1,200 just for one month.”

Swanson said the price of natural gas for the city went from about $5 per thousand cubic feet of natural gas to more than $200 for four days, from February 13th to the 16th.

“In those four days, that purchase literally was almost as much as what we spend the whole rest of the year in gas,” Swanson explained.

On top of that, the city’s gas usage was 25% higher than usual for the month of February.

City leaders said they didn’t see the higher rate calculations until March 9th, and delayed sending out utility bills to residents while assessing the startling numbers.

“One thing I’m really happy about is our city council, when it got together said, ‘Let’s turn over every stone, let’s be completely transparent,” Swanson explained. “It’s something we’ve worked on as a city for the last four years, heavily. Any time there’s an issue, let’s let the community know.”

The mayor shared a detailed post on his public Facebook page mid-March, explaining what Two Harbors residents were able to see in their mailboxes.

However, some residents are frustrated the warning didn’t come in when the city knew the gas prices were about to surge on February 12th.

“I know the mayor had posted something on his Facebook page,” Katelyn Johnson said. “Would it really have been that hard to post something on your Facebook page around that week saying, ‘Hey, you know we’re seeing gas prices that are way higher than we normally would and we expect this to affect the Two Harbors community?”

Another resident said she feels just as perplexed when it comes to a lack of an early warning.

“There’s many opportunities that they could have had something on the doors hanging for us, mailbox, just anything,” Jessica Rustad, a Two Harbors homeowner, said.

The mayor said the city was warned by its gas buyer on February 12th that the natural gas prices were about to surge.

That same day, interruptible gas customers such as Louisiana-Pacific were told by the city that they were required to stop operating temporarily due to the extremely high gas demand. LP was sent a large utility bill for its usage after it did not shut down.

While Two Harbors residents are feeling the shock after opening their bills in March, time may tell how many more Northland cities will experience the same surprise.

The chair of the Minnesota Public Utilities Commission has seen this issue affect non-municipal gas customers too, all over the state.

“We know that approximately 1.6 million customer accounts in Minnesota were impacted,” Katie Sieben, chair of the MPUC, explained.

She added that many accounts may not see the February price surge hit their bills until the fall, and it could even be buried in bills later on.

Back in Two Harbors, the city is working on ways to help lessen the blow their gas customers are feeling.

“We are very empathetic, we understand this is a hardship,” Mayor Swanson said. “Our council got together to meet, what we really started to understand is that we had to set up right away some relief options…so if that message can get across to the community of Two Harbors that we do have options here, feel free to call city hall. We’ll make sure you’re taken care of and that things are set up in a way where you can afford to pay this.”

The city of Two Harbors will allow residents to pay off their February natural gas bills over the course of a year with no late fees.

Meanwhile, the Minnesota legislature is looking at financial relief options for gas customers hit by the price surge in the state.

On the federal level, Minnesota Senator Tina Smith is calling on regulators to investigate the February gas price surge that hit the country.

The Minnesota Department of Commerce encourages renters and homeowners to check and see if they qualify for the energy assistance program. Crisis benefits have been doubled up to $1,200 per home. Phone number: 1-800-657-3710, then press 1

The Arrowhead Economic Opportunity Agency can help some residents with energy bill financial relief. Phone number: 1-800-662-5711.

Lake County also offers financial assistance for certain situations. Phone number: 218-834-8400.

The city of Two Harbors also says the Duluth Salvation Army may be able to provide financial assistance. Phone number: 218-722-7934.

Natural gas customers in Two Harbors can also call or email the city to work out a payment plan for their bill.

Email: info@twoharborsmn.gov

Phone: (218) 834-5631