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1.20.05 Still-high gas puts chill on utility bills Sixty-one-year-old Manson Jones lies awake at night worrying about his utility bills. Unable to work because of a heart attack, Jones has had to ask for help for the first time. And what worries him is that he hasn't made it through the worst of winter. "I laid in bed last night," Jones said, "and got a headache thinking about it." He's not alone. Paula Hite-Garcia, director of the utility assistance program for the Salvation Army, said calls are coming in like "crazy." Tuesday, 142 callers asked for help with their utility bills. Many of the people, Hite-Garcia said, are trying to get by on monthly incomes of $600 or less. Jones is among the people to have received help. The Salvation Army, in association with the Metropolitan Utilities District and Omaha Public Power District, paid off $580 in Jones' gas and electric bills. But like Jones, Hite-Garcia is worried about next month's bills, which will reflect the effect of the recent bitterly cold weather. Natural gas bills are running higher than normal this year because of the higher price of gas. Tight supplies have been the main cause of higher prices. Aside from the recent cold snap, the weather has been warmer than normal, which has buffered customers somewhat from the high price of gas. The average Metropolitan Utilities District customer used about 11 percent less gas last month than a year earlier. The average bill, however, was 18 percent higher than a year ago. That's because of the wholesale price of gas -- a cost that utilities pass along to their customers. Although gas prices this winter are higher overall, they have been dropping since November. January's prices were noticeably lower than December's. Jan Davis, spokeswoman for Aquila Inc., which provides natural gas in the Omaha area, said the industry has a strong supply of gas in storage, an important factor for heading off price spikes. But, she said, the utility isn't issuing any predictions. "There is a lot of winter left," Davis said, "and prolonged cold weather can change this almost overnight." This week, M.U.D., in partnership with the United Way, began offering budget counseling to customers. For help, call 211. At the same time, the utility has lifted its holiday moratorium on shutoffs. The utility has almost 2,000 customers on its shutoff list, and if the weather remains warm, the utility will start to work through that list. Mari Matulka, spokeswoman for M.U.D., encouraged people to take advantage of the budget counseling. "We don't want to shut people off," she said. "That's a last resort." The utility will not shut off service, Matulka said, if temperatures are forecast to drop below 20 degrees. Customers in good standing can take advantage of a utility's level payment. The plan locks in a monthly amount for the gas bill, allowing people to budget. About one-third of M.U.D.'s customers are on the level-payment plan. The current high price of gas has already been factored into the amount they pay. Jones isn't sure what the future holds. He has become one of those people who has to choose among medicine, rent, food and utilities. It's a strange position to be in, after working for more than 45 years. "I just do what I can do," he said. "When I get a little bit, I pay this or that." |
* A therm equals roughly 100 cubic feet of natural gas. Natural gas prices dropped in January. Your bill is determined by how much gas you use. Prices are rounded. ** Fixed rate plan. |
