Texas: February's gas bills could be up 241%

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URL: http://www.caller.com/2001/february/15/today/localnew/17776.html

-------------------------------------------------------------------------------- Thursday, February 15, 2001

February's gas bills could be up 241%

Supply-demand is cause; adjusting thermostat, closing doors can ease pinch By Stephanie L. Jordan Caller-Times

A high demand for natural gas, combined with a low supply of the fuel, will mean Corpus Christi residents' gas bills will be 241 percent more expensive this February compared with last February, city officials said. And the bills for the extra charges will arrive in mailboxes soon. For a homeowner who uses 10 units of gas, the bill for gas in January was $65.30. This month, that bill would rise to $110.60, reflecting a 59 percent increase in just one month. Since January, the city has increased the cost per thousand cubic feet of gas, or unit, from $6.53 per thousand cubic feet to $11.06. "This is probably the worst month," said Debbie Marroquin, gas superintendent for the city. "Prices have already started to go down, but they aren't expected to stabilize for 12 to 18 months." Payment help For more information call Operation Heat Help at 885-6910. For help with adjustments or payment plans, call 880-3440.

A household that had a $58.64 total bill in February 2000 should expect a bill of $141.13 this month, assuming the house used 10 units of gas, city officials said.

The problem started to occur as cold winters hit across the country, Marroquin said. Corpus Christi was no exception. The demand for natural gas also has increased, in part, because many power plants nationwide have switched to natural gas. "The (companies) did this over time because it was clean, efficient and had a low price," she said. The city purchases all of its gas from El Paso Riata, formerly known as Pacific Gas and Electric. Marroquin started to see the increase in prices for natural gas a year ago, but the budget for paying the company had already been set. City officials had budgeted about $13 million for natural gas this year. But actual and projected costs are now about $33 million, city officials said.

On top of that, exploration and drilling have been slow, Marroquin said. "When the prices were down, we couldn't get people to invest," said Scott Rutherford, a geophysicist for Suemaur Exploration and Production LLC. "Now our business is pretty good because prices are high and people want to invest. We're always 180 degrees out of phase with the economy. Now we're kind of making up for lost time." The city is offering help to those who will have trouble paying their bills, said Skip Noe, assistant city manager. One program helps by putting residents on a payment plan, and the other is called Operation Heat Help. This gas assistance program requires that the customer be at least 60 years old, on a fixed income, or be the single head of the household caring for children under the age of 18 and meet income criteria.

But residents can also help themselves by conserving. Some of the ways to conserve are to seal leaks around openings, lower the thermostat setting to between 65 and 70 degrees, set the water heater at 120 degrees, replace less efficient appliances and close vents and doors to unused rooms.

Maria Cortez had a better solution. She turned her gas off on all of her three bedroom home's appliances, with the exception of the water heater. The 80-year-old retired resident has already been hit by a hefty bill. Cortez was sick for three weeks in December and had to keep her house warm to stay healthy. Her utility bill was $198.30 and her monthly income is $480.86. "I didn't know what to do," she said. "So I turned off the gas, I use an electric skillet to cook and I have an electric heater in my bedroom. "But I'll be ok," she said. "It's getting warmer now and that is a blessing." The Women's Shelter got socked last month with an increase in its electric bill. Now it's bracing for the increase in the gas prices. Usually, the monthly electricity bill for one of the shelters is about $1,800, but last month's bill was $2,200. Now the shelter will have to come up with extra money for gas, which is used to cook all the shelters' food, as well as the hike already seen in electricity costs.

"We assume prices are going to go up 10 percent a year," said executive director Catrina Steinocher. "We just weren't prepared for this. I guess that it's good timing that we're having a fundraiser soon. We're going way over what had been budgeted. We're going to have to start looking for additional dollars."

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-- Martin Thompson (mthom1927@aol.com), February 15, 2001


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