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Natural gas prices skyrocketing this winter

Natural gas prices skyrocketing this winter
December 5, 2005
By The Daily Item

The devestating hurricanes in the Gulf Coast will result in higher prices for natual gas this winter season, according to two local major suppliers.

PPL Gas Utilities and PG Energy this past week announced price forecasts for natural gas this winter season.

The monthly gas bill for an average residential customer will increse by 26 percent, starting this month, according to data released by PPL Gas Utilities.

PG Energy is advising customers to expect increases from $1.207 per ccf hundred cubic feet to $1.212 per ccf, effective Dec. 1.

PPL quoted its prices as $13.70 per dekatherm, up from $9.75 per dekatherm.

Under the new rates, the total monthly bill for a residential customer who uses 8 dekatherms of gas will be $150.66, up from $119.12. A dekatherm is a unit of heat energy equal to 1 million British thermal units BTUs.

"We work hard to keep the amount we spend on natual gas purchased for our customers as low as possible, but we can't control prices," said Robert M. Geneczko, president of PPL Gas Utilities. "The whole market has been affectived by prices that were at record levels after the hurricanes.

A winter bill for a typical residental customer with natual gas home heating will be $347.92, based on gas usage of 20 dekatherms. Last winer, a gas heating customer using 20 dekatherms paid $228.50, according to PPL.

The increase is consistent with a U.S. Department of Energy projection that people with natual gas homes heating would pay, on average, 48 percent more this winter than last winter.

PPG officials said increases are unavoidable because of unsettling wholesale market conditions and prices that were further affected by the hurricanes in the Gulf of Mexico.

"Prices that were already high were affected even more by hurricanes Katrina and Rita as the destruction put a strain on natural gas production and supplies," said Donna Gillis, manager of communications for PG Energy.

Utility companies are recommending that cusotmers weatherize their homes and use energy-efficient products. PPL and PPG both offer monthly budget programs for customers and can provide information on energy assistance programs.

In Pennsylvania, a state Senate-approved bill is pending in the House that would apply $25 million from an expected surplus this year toward the cause.

Approval of the state funding would be a "major accomplishment, if we can get that money out there as soon as possible," said Irwin Popowsky, the state's consumer advocate. "Whereas Congress' failure to deal with this is almost inconceivable."

In addition, the state has set up a toll-free number, 866 550-4355, and a Web site, www.staywarmpa.com, for tips on conservation and how to get home-heating aid.

* The Associated Press contributed to this article.


LINK: http://www.dailyitem.com/archive/2005/1205/biz/stories/02biz.htm