Many homeowners will have to dig a little deeper in their
wallets to keep their houses warm this winter with natural gas
prices expected to rise by 17 percent.
Federal energy analysts are predicting an increased demand for
natural gas coupled with tight supplies will push natural gas
prices more than 30 percent higher than the same period last
year.
Many homeowners will have to dig a little deeper in their wallets to keep their houses warm this winter with natural gas prices expected to rise by 17 percent.
Federal energy analysts are predicting an increased demand for natural gas coupled with tight supplies will push natural gas prices more than 30 percent higher than the same period last year.
In October 2002, the average residential user had an average monthly natural gas bill of approximately $19.18. So far this month, the same family will end up paying approximately $24.95, an increase of slightly more than 30 percent.
Those who will be most directly affected by the expected increase will be home and small business owners, who consume the most natural gas, according to statistics from the U.S. Department of Energy.
In September the gas bill for an average Pacific Gas and Electric residential customer was 38 percent higher than October 2002.
Because of the way the natural gas market is structured, much of the increased costs will be passed on directly to consumers, said PG&E Company spokesman Jeff Smith.
State regulators analyze and set the price for natural gas each month.
Smith said PG&E does not make any additional profit when natural gas prices rise.
“PG&E has no control over the price of natural gas,” he said.
Just how high home heating costs will be this winter will depend largely on how cold it gets in November, December and January, analysts said.
With the national demand for natural gas so high, any increase in demand would drive the price up even more.
Smith said a big part of the problem is that it costs PG&E almost 45 percent more to buy the natural gas from Canada and the southwestern United States, which makes up approximately 71.6 percent of the state’s supply of natural gas.
Smith said the price of natural gas is directly linked to the demand for the colorless, odorless substance.
“(The price) varies every year. About two years ago, there was a slight downturn in the price,” Smith said. “This is all market driven.”
Smith said residents can take several steps to help keep their home heating costs down, such as turning the heat down when no one is home.
“Why pay to heat an empty house?” Smith said.
Here are several more tips to help residents keep their energy bill down:
– Set furnace thermostat at 68 degrees or lower during the day, health permitting.
– Program furnace thermostat at 55 degrees during the night or when the home is empty for more than four hours.
– Clean or replace furnace filters monthly during the operating season.
– In the winter, open drapes on sunny days to help warm the rooms.
– Do not preheat the oven. When possible use your microwave.
– Close the damper when not using the fireplace.
