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Natural gas costs predicted to rise this winter
By Scott Miller
scottmiller@pantagraph.com
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BLOOMINGTON -- Already saddled with higher electricity bills, natural gas customers can also expect to pay about 10 percent more to heat their homes this winter.

That’s an average increase of about $78 per customer for usage from October through March, or about $13 a month, according to figures from the federal Energy Information Administration in Washington D.C.

Meanwhile, Mid Central Community Action is so overwhelmed with requests for financial assistance because of rising electricity costs that the Bloomington agency has asked people to quit calling, at least until Nov. 1.

“We’re seeing higher (utility) bills, and we’re seeing people more desperate,” said Cathy Grafton, the agency’s director of community services.

Community Action administers the Low Income Home Energy Assistance Program, which provides one-time payments of around $100 for electricity users or $300 to $400 for natural-gas customers.

Until Nov. 1, only seniors 60 and older, people collecting disability payments, or customers who’ve been disconnected can apply for LIHEAP payments, Grafton said.

“We’ve done hundreds of applications this month,” she said. “We’ve been spending like crazy, but we still expect the program to go into April or so.

“The problem is we’re being overwhelmed with calls … the staff can’t keep up, and I don’t know what I’m going to do about it,” Grafton added. “There’s just so much fear because of (high electricity bills).”

In some cases, electric bills doubled or even tripled after a decade-long freeze on electricity rates expired in January.

Ameren gave customers time to catch up with the rising costs, but in October, began disconnecting customers for the first time this year. Grafton’s phone started ringing and hasn’t stopped.

Ameren will continue disconnecting customers until Nov. 1, said spokeswoman Natalie Hemmer.

Hemmer wouldn’t say how many disconnections the company made, but said they won’t make any from Dec. 1 to April 1, during the coldest months of the year.

During that time, electric bills should be similar to those seen during the winter months this year. Customers could even pay less, Hemmer noted, as Ameren disburses a second round of relief credits. This year, all customers received at least $85. Next year, customers will receive $5 to $20 per month, she said.

Prices could spike again late next year, however. Ameren intends to file for a rate increase later this year that wouldn’t take effect, if approved by the state, until next year. That would be a single-digit increase, Hemmer said.

Natural gas customers, meanwhile, can expect a double-digit increase this winter, according to the EIA.

Despite favorable weather and supply, natural gas prices have increased the past six weeks, likely because of the recent spike in crude-oil prices, the EIA said

Nicor Gas spokesman Bernard Anderson agreed with the EIA’s prediction but noted that fluctuations in the gas market could send gas prices higher or lower this winter.

“The biggest factor is always going to be the weather, but another factor is going to the economy,” he said. “It’s a volatile market.”

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Natural gas customers can expect to pay about 10 percent more to heat their homes this winter.
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Reader comments on this story - 18 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Fixed Income???? wrote on Oct 23, 2007 9:20 PM:

" I am amused with people who complain about their "fixed income." A fixed income means a guaranteed income, which sounds like a sweet deal to me. Those of us who work for a living don't get any guarantees. We have to earn our pay. So stop blubbering about your "fixed income." "

90% er wrote on Oct 23, 2007 4:54 PM:

" Nearly all Hi-eff gas furnaces use a lot more electricity in order to bring in fresh air and to expell the exhaust gases. "

same ole story wrote on Oct 23, 2007 4:28 PM:

" they announce that every year!! I have all electric, too bad gas-man!!! My electric bill for Sept. was $35!!!! "

To: to to Dave wrote on Oct 23, 2007 2:08 PM:

" Check that highest eff. furnace out there is now in the 90%'s...but the bugs are not out of the hi- eff. yet. "

to: Hey Whew! wrote on Oct 23, 2007 1:35 PM:

" Those of us who live in the B/N area *didn't* elect Emil. His district is up in Chicago. "

to To Dave wrote on Oct 23, 2007 9:26 AM:

" It also depends on what he had before. He may have an old rusted out hulk that gave him 50% effenciency. "

to:Good timing Bloomington wrote on Oct 23, 2007 9:20 AM:

" I'm on fixed income and it's getting hard to live anywhere. Wonder if I can claim to be an illegal and get everything free? "

HEY Whew! wrote on Oct 23, 2007 9:19 AM:

" YOU elected the pretty boy governor and his sidekick Emil. Most utilities are governed by states not Bush. You know the Illinois commerce commission. Here, I'll help you out. Go here. www.icc.illinois.gov/. Now go back and watch some more CNN propaganda. "

IMAGINE THAT wrote on Oct 23, 2007 8:31 AM:

" evrything goes up except for your pay rate...I think my days in Hellinois are about numbered. "

to Whem! wrote on Oct 23, 2007 7:29 AM:

" Don't forget those pesky Asian Beetles. They were bad and caused by Bush/Cheney too. "

Good timing Bloomington wrote on Oct 23, 2007 7:18 AM:

" Good timing Bloomington Council on proposed sales tax increase. Those who are on fixed income will not be able to live in Bloomington in the future. "

To Dave wrote on Oct 23, 2007 4:42 AM:

" You are going to be in for a great shock if you think a high efficiency furnace is going to cut your bills tremendously. The lowest efficiency gas furnace you can buy is 80% efficient. So the most you will save is about 10 to 16%. "

ilchzhed wrote on Oct 23, 2007 3:54 AM:

" "Natural gas added 3.9 cents to $6.93 per 1,000 cubic feet. Natural gas prices are under pressure from unseasonably warm temperatures in the north and Midwest and a forecast that this winter will be warmer than normal". Same paper different column, next we will here a gasoline tanker had a flat tire and gas goes up 20 cents. "

Whew! wrote on Oct 23, 2007 12:37 AM:

" '...electricity is higher than it should be; grocery ... through the ceiling; taxes beyond belief, ... raising rates ... .' Thankfully, we elected Bush/Cheney. "

Dave wrote on Oct 22, 2007 10:11 PM:

" I am glad I have a new, high efficiency furnace. Bring on winter. My bills are going down. "

Tell me... wrote on Oct 22, 2007 6:56 PM:

" something I didn't already know. The prices go up every year. I wish I could get a 10% raise at work this year. The rich get richer and the poor get poorer. Then there's the middle class, which is dwindling in numbers, while the poorer class grows each year. Go figure! Thank you Ameren and NiCor. Some of us like to be kissed when we're getting... "

Rates vs Costs wrote on Oct 22, 2007 6:53 PM:

" The problem with this article is illustrated by the first sentence. Gas RATES may be rising 10%, but gas costs are equally dependent on the weather. In other words, if gas prices rise 10%, but your usage drops 15% due to warmer weather, your gas cost will decrease. Or, if rates go up 10% but you use 20% more due to colder weather, your costs will rise much more than 10%. Someone needs to explain to Mr. Miller the difference between rates and costs. They are not interchangeable. "

No surprise wrote on Oct 22, 2007 6:32 PM:

" Gasoline is nearly triple the price it should be; electricity is higher than it should be; grocery prices are going through the ceiling; taxes beyond belief, everybody is raising rates in double and triple digits. Yet, when it comes to wages companies grant 3 to 4% per employee. The Pantagraph reports that people are having a hard time paying their bills. No kidding. "
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