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12.5.05 Heating cost drops with temperature Natural gas prices for the Omaha area have dipped about 10 percent to 15 percent this month over last month, just in time for the bitterly cold weather. Still, despite the drop from November, gas prices remain at record levels for December, so customers should be prepared for high bills. If December turns out to be a normal month for temperatures, the average Omaha household can expect monthly heating costs of about $175. A year ago, that same cost would have been a little more than $130. Two years ago, it would have been closer to $100. But those comparisons assume normal weather, and so far, this month has been anything but. December temperatures have averaged 16.4 degrees below normal thus far, with no relief in sight through Friday. Tracey Christensen, spokeswoman for the Metropolitan Utilities District, said prices have dropped because the market is less jittery. November's mild weather allowed companies nationwide to replenish reserves, creating a more comfortable cushion going into winter. Also, about 23 percent of production was restored in the Gulf of Mexico after being knocked offline by hurricanes. "The market is more confident," Christensen said. Prices also are down slightly because of a credit from a national rate case involving the transportation of natural gas. With these December prices, M.U.D.'s rates have again dipped below those of Aquila Inc., the Kansas City, Mo.-based utility that also provides natural gas to the metro area. Customers can track their daily cost of gas by reading their meters. Calculate each day's use and multiply the number of therms by the price per therm. |
* A therm equals roughly 100 cubic feet of natural gas. Your bill is determined by how much gas you use. | ||||