Friday, July 04, 2008
Winter may be chillingly expensive
No matter how you heat, be prepared for costs to rise significantly this winter.
It's likely your home heating bill will rise this winter.
And it may not matter which conventional fuel you heat your home with -- gas, electricity or oil.
Roanoke Gas is urging customers to prepare for large seasonal outlays compared with last year, as prices could be up as much as 50 percent this winter.
"If natural gas and other energy costs rise as much as currently predicted and winter temperatures are close to normal, home heating bills could reach record levels," company president and chief executive officer John Williamson said in a letter with June bills.
Williamson said he was aware he was delivering unwelcome news. But he said he would rather not have customers find out when they open their December or January bills and are juggling credit card statements bearing holiday purchases.
In the New River Valley, natural gas provider Atmos Energy Corp., based in Dallas, warned its customers, too.
"Our rates may rise slightly this winter," spokesman Joel Ames said by e-mail.
Those who heat with electricity could face a large increase from Appalachian Power Co., which is weighing whether to push rates up to 24 percent higher this fall.
Heating oil, another option, is way up already.
F.L. Hatcher and Son in Roanoke was charging $4.35 a gallon for 100 gallons and $4.30 a gallon for 150 gallons or more Thursday. That's about $2 more -- or 80 percent more -- than a year ago and is in keeping with petroleum-product trends.
Williamson emphasized that his warning is a speculative assessment of how the cost of natural gas service this coming winter could compare with last winter.
Variables such as the weather, political and military conflicts, the economy and consumer behavior will shape the cost of the season, which usually runs from November through March.
There is time to prepare by replacing old equipment with new.
Jerry Cundiff of Cundiff Heating & Air Conditioning said people are calling his office with inquiries and orders. He said he has noticed a shift in consumer interest away from natural gas heaters to heat pumps and hybrids that combine both methods. A new unit costs $3,000 to $8,000.
Although heating costs are rising to uncomfortable levels for many, Cundiff said colleagues in his industry express awe at this region's relatively low electricity prices
"They can't believe how cheap we can heat a home around here," Cundiff said.
Residents who want to stay on top of the home heating issue should act now or soon to ensure their dwellings are properly insulated, doors and windows seal well and the heater works efficiently, Williamson said. The gas company inspects heaters for about $120 to make sure they work right.
Also, gas customers can elect to spread home heating costs over the year by choosing the gas company's budget billing program.
Williamson said a typical budget-billed customer will see an increase from about $80 a month to $120 a month, effective this month. Those who pay as they go can expect gas for the upcoming winter to rise to about $1,500 from about $1,000, Williamson said.
"People could see as much as a 50 percent increase, just like they've seen at the gas pumps," he said.
Williamson outlined a few of the top causes that experts say are driving the increase. He said natural gas is a hot commodity, flowing at elevated rates to replenish gas storage sites and generate electricity. Meanwhile, its price tends to rise with that of oil because the two fossil fuels can be substituted for each other in some applications.
Such news hits hard at safety-net programs, such as Roanoke Area Ministries in Roanoke, a charitable organization with a program that helps people pay their energy bills to avoid eviction or loss of service.
The agency is unlikely to have the money to give significantly larger assistance checks this coming winter if clients owe more.
"We'll just have to do the best we can and take care of everyone who comes in who qualifies for help," said Jo-Anne Woody, administrative assistant.
Similarly, the HeatShare program in Roanoke is anticipating having to stretch its funds further this winter.
The Salvation Army program, which channels donated funds to people struggling to pay natural gas bills, will need more donations to help more people, said Jonathan Lee, director of development and marketing.
Lee said he hopes people will give "whatever someone feels they can share with us."





