Oklahoma Agencies feel sting of gas bills

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Agencies feel sting of gas bills 2001-02-03 By David Zizzo Staff Writer

Residents aren't the only ones experiencing natural gas pains. State and local government officials across Oklahoma also are feeling the hurt.

At state agencies, officials are trying to plug million-dollar holes blown in budgets by gas price hikes and a cold winter. Some are cutting spending on other items; some are asking legislators for more funds.

"It's going to create a major budgetary issue for us," said David Statton, interim commissioner for the Department of Mental Health and Substance Abuse.

In cities and towns, it's the same story, except maybe with fewer options.

"It's going to blow our budget out of the water," Woodward City Clerk Brigette Baird said.

Most large state agencies report that their gas expenses have roughly doubled. However, the Department of Human Services expects gas costs to rise 158 percent, and gas costs tripled at state technical education centers in the first six months of the fiscal year.

RL Beaty, associate state director for administrative services for the Department of Career and Technology, said if legislators don't provide extra funds "probably school systems will cut back in lots of different areas."

Predicting the "moving target" of temperatures is hard enough without struggling to heat aging, inefficient buildings, mental health officials said. They will need $1 million more than last year for gas.

The Department of Corrections estimates spending $1.8 million more on gas, a 110 percent increase. Equipment might not be replaced if lawmakers don't provide more funds. At the Transportation Department, December's gas bill more than doubled to $10.7 million, and that was just for one of eight field divisions.

Officials running buildings at the Capitol complex tried to plan ahead, allocating 80 percent more for natural gas this year.

"We're still going to come up short," said Tom Hall, director of special projects for the Department of Central Services.

In cities, it's cut back or else.

Ponca City will handle its doubled gas bills by delaying purchases of heavy equipment and upgrades to traffic signs and signals. In Woodward, officials might put off hiring and will search for cuts in all departments. In one city department, the January gas bill was as high as a typical bill for all of July through December.

In Oklahoma City, leaders are considering using financial reserves or making budget changes to pay gas bills, most of which doubled. Then there was December's gas bill for City Hall. It went up 800 percent from last year.

"I just couldn't believe that bill was accurate," unit operations manager Chris Spencer said. It wasn't. The corrected bill was $5,900, still more than double last year's.

Bartlesville planned for bigger utility bills when city offices moved into a bigger building last year, but officials now must make cuts in every department to pay tripled gas bills. Bartlesville City Council members want to meet with supplier ONG to prepare for next year -- and to get an explanation for the price hikes.

"We can understand the increased cost of transportation and delivery systems," City Manager Steve Brown said, "but we're more surprised about the increased cost of the gas itself."

Some cities won't make more cuts, though. Enid officials already had cut enough personnel and purchases of equipment before to handle such emergencies. Lawton also will pay for gas without cutting services or freezing salaries.

Bigger problems might come later as increased energy costs continue driving up prices on things cities must buy, like concrete, Lawton Finance Director Steve Livingston said.

The gas problem has some people inventing new budget strategies, while others are thankful someone did that before.

Ponca City officials say when it's time to replace heating units, they'll consider going electric.

In Tulsa, which is spending $50,000 more each month for gas at one sewage plant alone, officials have a renewed appreciation for steam. The city contracts for steam to heat a half dozen of its downtown buildings and shares profits from the sale of steam produced at its trash- to-energy incinerator plant.

The seat of Oklahoma government is immune from gas pains. The Capitol has no dome, but since 1990 the building has had a heat pump. Electricity circulates water deep underground through a well field west of the Capitol.

McAlester hasn't noticed the gas price increase, thanks to a 12-year-old agreement that gives the city 10 million cubic feet every year without charge.

"Considering the fact that we have about 43 city facilities that use natural gas, it's been a good agreement for us," said City Manager Randy Green, who worked out the 25-year contract in 1989.

CONTRIBUTING: Staff writers Don Diehl, Dawn Marks, Bob Doucette, Jack Money and Roy Deering

http://www.oklahoman.com/cgi-bin/show_article?ID=633599&pic=none&TP=getarticle



-- Martin Thompson (mthom1927@aol.com), February 03, 2001


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