Web Publish: Monday, September 25, 2000

Natural Gas Bills Could Triple

Utilities Paying More

By David Robinson, TIMES RECORD, DONREYNEWS.COM

LITTLE ROCK  A tight supply and higher demand for natural gas could as much as triple Arkansas customers bills this winter, the state Public Service Commission is warning.

The price that natural gas utilities are paying for natural gas to serve customers already is almost twice as high as a year ago, according to the PSC.

The combination of higher market prices and colder temperatures this winter could cause bills for natural gas service to be two to three times higher than last winters bills, the PSC said in a release.

Meanwhile, energy experts warned the nations governors on Wednesday that heating bills could jump 20 percent to 30 percent this winter, the Associated Press reported.

Governors from across the country met with the largest producers, suppliers and regulators of natural gas during a one-day meeting at Columbus, Ohio, to help in planning for the winter heating costs.

Robert Booth, manager of the PSCs gas and water utility section, said it would take an abnormally cold winter to triple gas bills in Arkansas.

Last winter was extremely mild, so even with the same type of weather, bills will be significantly higher, Booth said. If the weather is normal, with the current prices bills will be even higher still. If we have a cold winter with the current pricing, bills will be up in the two-times-higher range. If abnormal weather occurs, you could easily see three times (higher bills).

The wholesale price of natural gas this time of year normally is about $2 per thousand cubic feet. This years price is about $5 per thousand cubic feet, the Associated Press reported.

Booth said gas customers, particularly those with lower incomes, should consider signing up for levelized billing with their gas companies.

He also suggested that gas customers insulate their homes.

Booth said gas supplies are short for several reasons:

w An increase in demand as the economy has grown.

w Low gas prices in recent years resulted in a decline in exploration.

w Natural gas is being used in the generation of new electricity.

Now that price is up, drilling activity has increased but it will be a period of time before that new production comes on line, Booth said.

http://www.swtimes.com/archive/2000/September/25/news/natgas.html

-- Martin Thompson (mthom1927@aol.com), September 25, 2000