Fuel prices high, but warmer temperatures could offer relief

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October 17, 2008

Anonymous The Joplin Globe Fri Oct 17, 2008, 08:54 PM CDT

By Debby Woodin

dwoodin@joplinglobe.com

Button up and be prepared.

That’s the advice for dealing with winter heating costs.

Low demand for fuel now while the weather is mild has driven prices down, but it’s hard to say what size bills the coldest months of the season will bring, utilities and consumer groups say.

Kerry Cordray, of the Missouri Department of Natural Resources, said fuel prices aren’t as high as expected — yet.

“Earlier in the summer, there was some significant concern about natural-gas rates being much higher. That has moderated somewhat. We’re actually slightly down compared to last year’s cost. The variable is what’s the weather going to be like?”

Kelsey Angle, a meteorologist for the National Weather Service in Springfield, said the area’s long-term outlook came out Thursday for November, December and January. It predicts warmer-than-normal winter temperatures.

“We’re looking at a pretty strong possibility of above-normal temperatures over that three-month time frame. Now, that’s average temperatures. That doesn’t mean we’re not going to have some cold temperatures,” Angle cautions.

The forecast, issued by the Climate Prediction Center, isn’t clear on how much precipitation the area may get.

Natural gas is the heating source of choice for half of U.S. households and a larger percentage of area residents, according to Missouri Gas Energy, the utility that supplies customers in the Joplin area.

Jason Fulp, community affairs representative for MGE, said the gas company will file its request to set winter rates within the next few days with the Missouri Public Service Commission. The company will not disclose what rates it will request before they’re filed, Fulp said.

Amy Bass, of Empire District Electric Co., said the utility’s electric rates won’t change except for a fuel-adjustment charge the company will ask for April 1. Under an earlier PSC ruling, the electric company will be allowed to make a charge every six month on bills for any increase in costs the company experiences when it is buying energy from outside sources.

Bass said the company cannot predict prices because it is publicly traded and regulated.

Cordray said natural-gas and electric users probably won’t be the worst hit.

“Overall the biggest concern right now for winter heating has to do with households that are using propane,” Cordray said.

Propane prices also are lower than was expected earlier in the year.

Beth Murphy, office manager of Heartland Propane at Baxter Springs, Kan., said propane is 38 cents per gallon cheaper than a year ago. The current price is $2.19.

The average customer will buy about 250 gallons three or four times between October and March. At today’s price, that’s up to $2,200 for a winter season. And that price likely won’t last.

“The projection has been for higher prices, which is why we expect it to go up even though it’s been down lately,” Murphy said.

All of the utilities and the DNR encourage consumers to conserve as a means of controlling bills.

“What we always encourage folks to do is to spend $30 to $50 at your home store to buy a programmable thermostat,” Cordray said. “The Department of Energy says you can save 10 percent or more a year on heating and cooling costs.”

Cordray said the DNR and PSC launched a new Web site this week aimed at helping consumers rein in costs. The site is located at www.beenergyefficient.org

“So looking at information we’re providing at the ‘Bee’ site, Missourians can take some control over their own usage: How much they’re using wisely and how much they’re throwing out into the cold,” Cordray said.

Lowering bills

Among the tips offered by utilities and the DNR to save energy and lower bills:

Keep the furnace thermostat set at 68 degrees. Every degree it is lowered saves 1 to 3 percent on the bill.

Add insulation to the attic up to a value of R-49.

Use a caulk gun and make sure you don’t have cracks around windows, basement and other places where winter cold can enter the home.

Have a furnace check and tune-up.

Look for other tips on www.beenergyefficient.org or on utility company Web sites.

Instead of shaking at the frigid thought of opening the utility bill, get on a level pay plan.