Natural gas prices spiked more than 500% due to frigid weather

Minnesotans should expect warmer weather in the days ahead. Some should also brace for an especially high energy bill.

The extreme cold that has blanketed much of the U.S. since late last week has sent the cost of heating in Minnesota skyrocketing, filings with the Minnesota Public Utilities Commission show.

CenterPoint Energy, Xcel Energy, Minnesota Energy Resources Corp. and Great Plains Natural Gas Co. all reported the price of natural gas exceeding more than 15 times what they expected to pay on Jan. 23. Minnesota Energy Resources Corp., which services much of southern Minnesota and several areas north of the Twin Cities, reported a similar price spike again on Jan. 27.

Minnesota is no stranger to subzero temperatures. But the weeklong winter blast was so widespread that Minnesota utilities were essentially bidding against buyers in states that typically don’t experience extreme cold, such as Louisiana, CenterPoint Energy spokesperson Joshua Solis told the Minnesota Star Tribune.

“What was unique about this is we had a nationwide, long-sustained cold weather event,” Solis said. “That really increased demand on natural gas, especially over this past weekend.”

Temperatures in the Twin Cities hit a low of minus 21 degrees on Friday, Jan. 23, reaching as low as minus 29 in the Duluth area, National Weather Service data shows.

Utilities had anticipated spending roughly $4.70 per dekatherm of natural gas over the past week. But at its peak, the wholesale cost of natural gas reached $75 per dekatherm, said Alison Trouy, a spokesperson for WEC Energy Group, the parent company of Minnesota Energy Resources Corp.

As a result, utilities are continuing to encourage their customers to conserve energy and dial down their thermostats if they’re concerned about their bills. Despite the price increase, the companies said Minnesotans should rest assured that there is no shortage of natural gas.

Some of the money-saving tips the utilities are encouraging include:

Nationwide, energy costs have remained relatively high since last year amid stubborn levels of inflation. The wholesale price of natural gas rose an average of $3 dollars from 2024 to 2025, according to the U.S. Energy Information Administration. The EIA is forecasting elevated costs through the end of the year. Xcel Energy raised its natural gas rates in the state by 6.8% on Jan. 1.