Heating cost expected to rise 50% this year Experts say high prices for natural gas will hit the elderly and the poor particularly hard.

By DAWN SAGARIO Register Staff Writer 07/08/2000

Already hard-hit by skyrocketing gasoline prices, Iowa consumers will be slammed again this winter with heating bills that could be 50 percent higher.

The average Iowa consumer will pay between $160 and $200 more this winter for natural gas over last year, said Des Moines-based Mid- American Energy Co.

Natural gas prices have nearly doubled from June 1999, said MidAmerican spokesman Kevin Waetke. While prices could drop, experts expect higher prices to be sustained into the winter.

Much of the higher fuel costs are passed on to consumers, Waetke said.

Higher demand for natural gas, coupled with less production, are factors for the price increase, said David Downing, fuel-price expert for the Iowa Department of Natural Resources.

Electrical companies also are using more amounts of cleaner-burning natural gas, reducing the use of coal, said Ward Lenz, energy data analyst at the state environmental agency.

Increased use of utilities has contributed to lowering natural gas inventory levels and pushing up prices. National levels of natural gas are 8 percent to 10 percent below normal storage levels, Lenz said.

The price increase could significantly affect those on limited incomes, like the elderly, who receive government assistance for heating payments during the winter months.

John Burnquist, program coordinator for the Low-Income Home Energy Assistance Program, said 62,006 Iowa households received assistance for the last heating season.

The program pays for a portion of the eligible family's cost based on factors such as income and the type of fuel used. The average amount provided last year was $204.

"This will obviously place an even greater burden" on families, Burnquist said.

The elderly make up a significant portion of the households served by the program. Burnquist said that almost 37 percent of the clients are 60 years or older.

Many senior citizens try to keep heating costs down by keeping temperatures low in their homes.

"They're afraid to turn the temperature up," said Sharon Brooks, coordinator for the Red Rock Area Community Action Program - Polk County Center.

Marjorie Leverich, 70, a Des Moines resident, said higher prices could force her to move from her home of 41 years and into an apartment.

Last winter, Leverich received $240 of fuel energy assistance for the winter season. That was enough to cover heating payments for January and most of February, she said. The increase in utility payments may also mean cutting other corners for Leverich, with less money available for food or medication, she said.

http://www.dmregister.com/news/stories/c4789010/11778401.html

-- Martin Thompson (mthom1927@aol.com), July 11, 2000