MINN: Heating oil, natural gas shortage affect suppliers

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Friday, September 1st, 2000

Heating oil, natural gas shortage expected to affect area suppliers

With last week's record high increase in oil prices, consumers can expect to pay more for natural gas and oil to heat their homes this winter.

Bernie Ahlberg, energy manager at Nobles County Cooperative Oil Co., said his company is already having problems getting oil.

"Typically, we don't have those problems until October," Ahlberg said.

The price for fuel oil and diesel fuel are 31 cents higher per gallon today than they were last year at this time.

"Based on that, the increase is going to be sizable, 25 percent at least," Ahlberg said.

Nobles County Cooperative Oil has sent a letter to its customers telling them about the oil shortage causing high prices for home heating oil. The letter tells customers about the contracting services available.

"Contracting is the way to go this year," Ahlberg said.

Contracting allows customers to order their fall and winter oil supplies now and receive it at the current price.

Patty Peterson, spokesperson for Reliant Energy Minnegasco, said they, too, are taking steps to inform customers about the high home heating oil prices. Minnegasco provides natural gas service to Luverne, Pipestone and Jasper.

"Our main concern now is getting out the word to our customers to avoid shock," Peterson said.

Minnesgasco started sending information to its budget plan customers in July. Peterson said most customers on the budget plan are seeing an increase of $15 to $20 a month.

"People are pretty understanding. They are glad we're letting them know ahead of time," Peterson said. "It's more difficult for some customers than others."

As people call in with concerns about the prices, Minnegasco is sending them a fact sheet. The fact sheet gives customers tips on how they can use energy more efficiently.

"We're encouraging customers to join the budget plan," Peterson said. "It helps even out the peaks.'

Minnegasco expects its customers will see a 30- to 40-percent increase in their total bill if the high prices continue.

"Once the weather gets cold, customers are going to see an increase in their bill," Peterson said.

According to Peterson, the prices have soared to the highest level in 20 years.

Peterson pointed out that the last two winters have been 14-percent warmer than normal. Customers will benefit if this winter follows the two-year trend.

The natural gas futures market is not showing a decline in gas until next spring, Peterson said.

With the high oil prices, Doug Mead expects more people will apply for the Minnesota Energy Assistance Program (EAP). Mead is the EAP coordinator at Southwestern Minnesota Opportunity Council Inc. (SMOC), Worthington. The EAP provides funds to help people pay their home heating bills. The qualifications for the program are based on household income and assets.

Mead said usually the energy assistance program begins taking applications in September. This year, however, the applications will not be available until October. Mead oversees the EAP for Nobles, Rock, Pipestone and Murray counties.

Individuals interested in more information about the EAP may call Mead at SMOC, 376-4195.

Peoples Natural Gas officials did not return telephone messages to comment on this story.

http://www.dglobe.com/stories/friday/n0309012000o.htm

-- Martin Thompson (mthom1927@aol.com), September 02, 2000

Answers

So, in Minnesota they are having trouble getting oil--ALREADY?

That is significant.

-- JackW (jpayne@webtv.net), September 02, 2000.


It looks like the shortages are going to be in heating oil, and maybe diesel, this time, unlike the 1970s where the shortages were at the gasoline pump.

-- Billiver (billiver@aol.com), September 02, 2000.

When you throw in natural gas and propane to the shortage mix, the prospect of a real energy squeeze is in the offing. This should be clear for all to see.

-- Wayward (wayward@webtv.net), September 02, 2000.

Martin--Thanks for posting the above article. I happen to live in MN and was able to contract my propane for .90/gallon. Had to send a check in advance to get that price for the estimated gallons used. I also have rental property that used Minnegasco's Natural gas. I haven't heard a word from them about a budget plan Going to call them on Tuesday. Like the article mentioned, the last few winters here have been very warm and if we have a normal winter, lots of people are going to be hurting. Now I am going to cut some more firewood to add to the pile. Burning wood helps a lot. Keep up the good work.

-- Bill (Sticky@2side.tape), September 02, 2000.

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