Californians to see natural gas bills rise substantially

Monday, September 25, 2000 By Bruce Spence, The Record, Stockton, California

The economy is still roaring, and more businesses are doing more business, which is good.

They're also eating up more energy, which won't be good when it comes time to pay your natural-gas bills this winter.

Pacific Gas and Electric Co. says its customers likely will see their winter natural-gas bills climb by as much as half, because increased demand has been pushing up market prices.

That means an average residential monthly bill of $50 would climb to about $75, PG&E spokeswoman Staci Homrig said.

"Demand across the nation is up for all forms of energy, including natural gas," she said. "Supply is tight right now, because in the past few years, prices have been low, and there's been less production."

John Sharp, vice president of the Natural Gas Supply Association in Washington, said unprecedented demand for natural gas by electricity producers has tightened supplies, but he wouldn't speculate whether that might mean higher prices this winter.

First of all, producers are drilling at unprecedented levels to increase supplies, he said. This after significantly reduced drilling in 1998 and 1999, because prices were low and there was no incentive to drill.

"All I can say on the supply side is that we will see additional supplies, which should have a beneficial effect on the market," he said.

Second, no shortfall is expected, he said.

Third, there are too many other factors that could affect prices, such as how cold the winter turns out to be, the amount of storage and so on, Sharp said.

The American Gas Association, which represents 90 percent of natural-gas utilities across the country, is expecting ample supplies nationwide.

"However, it is going to cost more," association spokeswoman Daphne Magnuson said. "It's supply and demand  classic dynamics of the marketplace. It's a strong economy, and demand is high. It's an attractive fuel."

But the higher prices will likely help boost future supplies, she said. http://www.enn.com/news/wire-stories/2000/09/09252000/krt_natgas_31872.asp

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

Answers

I don't know where they get this graduation from $50 fuel bills to $75.

If it's a 50% increase my PG & E bill will go from $200 to $300.

-- JackW (jpayne@webtv.net), September 25, 2000.

Sombody at PG&E must be mathematically challenged.

-- R2D2 (r2d2@earthend.net), September 25, 2000.