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2.2.03 Gas bills grow this winter There may be a roller coaster with more ups and downs than natural gas prices, but it would be hard to find. Influenced by everything from the weather to corporate profits, the price of this valuable commodity bounces around. This winter, household heating bills are running about 30 percent to 60 percent above last year for homeowners who use natural gas. But cost is relative -- those bills are running about 40 percent to 50 percent below the bills received during the bitterly cold winter of two years ago. "A lot of it has to do with the severity of the weather," said Jerry Gohr, assistant general manager of operations for the Metropolitan Utilities District. The two largest natural gas suppliers in Nebraska are M.U.D. and Aquila Inc. M.U.D. serves the Omaha area. Aquila serves Lincoln, Bellevue and a number of suburban Omaha communities. It also serves parts of Iowa, including Council Bluffs. The average M.U.D. residential customer has paid $255 so far this winter for heat, about 59 percent above last winter, but 41 percent less than two years ago. Bills for Aquila customers are running about 30 percent above last winter and about 50 percent below two years ago, said Jan Davis, community relations manager. The average Omaha-area customer of Aquila Inc. has paid $203 so far this winter. Aquila bills are lower than M.U.D. bills because Aquila customers are using about 20 percent less gas. This winter's bills are higher primarily for two reasons, Gohr said. First, this has been a colder winter - about 25 percent colder than last year, based on heating degree days - so people are running their furnaces more. Second, the winter has been particularly cold on the East Coast. With so many people living in that area, demand has forced up the wholesale price of natural gas across the country. And because the natural gas futures market is bucking historic trends and staying high, little change is expected. "Current U.S. market trends indicate that higher gas prices will likely continue during the remainder of the heating season," Davis said, "and probably through the remainder of the year." Almost 70 percent of Nebraskans use natural gas. The rest use primarily electric heat and propane. Bills for electricity users also are increasing, according to the U.S. Energy Information Administration, but to a lesser degree. War with Iraq could shock natural gas prices further upward, but Gohr said he is among those who believe the market has priced in that instability. |
The Metropolitan Utilities District uses a liquefied natural gas plant on some of the coldest winter days. It enables the us to buy gas at lower rates, liquefy it, store it and then return the fuel to its gas form for use during high-demand periods. |
