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12.10.08 You have seen the drop in fuel prices at the gas station. Now the decline in energy prices is finding its way to your winter heating bill. Natural gas bills for some Omaha area residents could be 20 percent below last winter due to the worldwide economic downturn. That's a welcome turnaround from earlier this year when projections were that bills could jump 15 to 20 percent. Assuming that winter is normal and that current price trends hold, the Metropolitan Utilities District is projecting the lowest prices since the winter of 2004-2005. Black Hills Energy, the other major provider of natural gas in the metro area, is not projecting a significant drop. Black Hills provides gas to eastern Nebraska, except that area served by M.U.D., and parts of Iowa, including Council Bluffs. Bob McKeon, spokesman for Black Hills, said prices likely would be at or below last year if winter weather is normal or warmer than normal. No one can say if these projections will hold. Warm weather could bring a greater drop in prices, while cold weather or some other instability could cause prices to increase, said Ron Bucher, senior vice president for Administration at M.U.D. M.U.D. and Black Hills are structured differently — M.U.D. is a public entity, while Black Hills is investor-owned — which is one reason for differences in prices. M.U.D. board member Tim Cavanaugh has asked the district to look at lowering the level payment amounts to reflect the drop in prices. About 30 percent of M.U.D.'s customers pay a set amount monthly based on anticipated usage and prices. M.U.D. President Tom Wurtz said the district would look into that, but did not commit to making a midwinter change. |
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