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Winter Price and Supply Outlook

While electric and natural gas rates are approved by the Commission, they are influenced by global factors affecting demand and supply. Over the past few months, natural gas prices have increased significantly. As a result, the rates charged by our natural gas utilities have increased as well. Electricity rates are also affected by natural gas prices as many electric generation plants burn natural gas to produce electricity.  As a result as natural gas prices rise, so does the cost of generating electricity at those plants.  While increases to residential electric rates are projected to be less than the increases seen recently in natural gas rates, increases to electric rates are also expected during this winter season for some customers.