Why are Winter Gas Bills Higher?
Here's What You Need to Know
Part of this winter’s higher natural gas bills is due to unprecedented rate increases by East Tennessee Natural Gas (ETNG) — the Canadian owned sole supplier of natural gas to utilities across East Tennessee.
In November 2025, ETNG increased:
• Transportation rates by 123%
• Storage rates by 178%
These extraordinary increases directly raised the cost SCUD must pay to provide service — and those higher pipeline costs are reflected in customer bills.
SCUD and other utilities are formally challenging these increases before the Federal Energy Regulatory Commission (FERC). Members of Tennessee’s Congressional Delegation have also expressed concerns to FERC on behalf of consumers.
If you’ve been impacted, you are encouraged to contact your U.S. Senators and Representatives to share your concerns while this matter remains under review.
Additionally, East Tennessee experienced some of the coldest temperatures in several years during late January and early February. When temperatures drop, natural gas usage rises — and with higher heating demand, monthly bills increase. During this time, the NYMEX natural gas market prices reached their highest levels since 2023. Natural gas utilities do not control market prices. The cost of the gas purchased from suppliers is passed through to customers without markup.
We’re Here to Help
We understand that higher winter bills can be challenging. If you’re experiencing financial hardship, please contact our office. We can discuss payment options and connect you with local energy assistance programs and charitable organizations that provide utility bill support. Our Levelized Billing Program allows customers to spread their natural gas costs evenly throughout the year. Instead of large seasonal spikes during the winter, your bill is averaged based on your past 12 months of usage so you can better plan and budget your household expenses.
Levelized billing does not change the amount you pay for natural gas—it simply spreads those costs out over the year to create a more consistent monthly bill.
If you’re interested in enrolling or would like more information, please contact our office and we will be happy to assist you. We’re committed to keeping you informed and supporting our community.