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Temperatures drop, natural gas prices climb
January 8, 2010—The cold weather has put clear plastic insulation on Kerry Jirus' windows, draft stoppers in her door frames and anger in her father's heart.
by Emily McFarlan, Aurora Beacon-News "My dad's always yelling and complaining," said the 29-year-old Plano woman. But it's not the cold that's angering Jirus' dad. It's the heating bills. The six-month "heating season" runs from October through March, and gas prices started to rise as temperatures first dropped in December, according to Richard Caragol, a spokesman for Nicor. This month, Nicor's gas supply charge is at 68 cents per therm (the unit of heat gas companies use), Caragol said. That's up 18 cents from last month and up 2 cents from this time last year. That gas supply charge, on which the gas company does not make a profit, makes up 75 to 80 percent of a heating bill. "They've been going up because of the lower temperatures," Caragol said. "That puts upward pressure on demand, which puts upward pressure on price, as well." Prices otherwise had been at an 8 percent decrease over last year, Caragol said. Oil going up And it's not just demand affecting gas prices. Extremely cold temperatures for oil-producing regions off the U.S. Gulf Coast, from Mississippi to Texas, until mid-January could threaten temperature-sensitive refinery processes, according to AccuWeather.com. All that caused a crisis for energy markets earlier this week, when a barrel of oil topped $83 for the first time since fall 2008 and natural gas futures soared 6 percent. The Energy Information Administration also issued a surprise report that showed the supply of crude and gas in storage is growing. Last week, the amount in storage was three times what energy analysts expected. But that's not worrying Anthony and Patricia McCoy of Naperville, thanks to an environmentally friendly move they made a few years back. "A couple years ago, we retrofitted the house with new windows and that really cut the heating bills in half," Anthony McCoy, 68, said Thursday. Budget plans For others, however, this is a crisis. Several programs, including budget and financial assistance options available through both Nicor and the government, can help ease household heating costs, Caragol said. The Nicor Gas Budget Plan helps customers plan ahead while minimizing the impact of natural gas price increases during the colder months of the winter heating season by spreading out payments over a 12-month period. And the Energy Depot on nicorgas.com can show customers how much energy they use and gives tips how to use energy wisely. Financial help for households at up to 150 percent of the federal poverty level also is available through the Low Income Home Energy Assistance Program (LIHEAP), funded by the U.S. Department of Health and Human Services and the state of Illinois. Nicor, Salvation Army team up And for those households at 150 to 200 percent of the federal poverty level, Nicor and The Salvation Army offer one-time, annual grants through the Nicor Gas Sharing Program. "We're starting to see people who are concerned about are their bills going to go up and should they get the (one-time assistance) payment now," said Major Ken Nicolai of The Salvation Army. Over the last year, Nicolai estimated that program has given out more than $75,000 in assistance. But they only get the assistance once a year. "Those who already have gotten payments in the past 12 months won't be eligible when the prices really go up," Nicolai said. |