Higher heating bills on the way

Tag : Heating Supplies

Crude oil prices on the futures market are $131 per barrel forAugust as compared with the $133 per barrel speculators are willingto bet oil will be worth in December.
"It indicates an increase," Byrom said.
Chris McGill, one of American Gas Association's spokesmen agreed:"Thirty to 50 percent more is the industry's expectation of whatbills will be this winter."
Natural gas was about
per mmbtu at the end of the last winter season, but it costs $11 to$13 per mmbtu to store it for the upcoming heating season, McGilladded.
"That's a clear heads-up," McGill said.
He, too, sees an indication of higher bills from the futuresmarkets. June futures markets were in the $13 to $14 per range,McGill said. They've dropped a bit since then, McGill said.
"The double-digit prices of the last couple of months, at thebeginning of the season, have been a big factor in making local gasutilities anticipate higher heating costs this winter," McGillsaid.
Responding to the irony San Juan County residents have expressedabout high gas prices they pay when they are surrounded by thecommodity, McGill noted that natural gas from this area servespeople all over the country.
"And the gas goes to the highest bidder," he said.
Speaking of irony, Byrom remembered last summer, when he said theindustry was "sweating," he added.
"We thought the market would tank because prices were down andstorage was way up," Byrom said.
Avenues for consumer help
PNM's Susan Sponar strongly urges the utility's customers to usebudget billing, which "smooths out" their monthly payments bymaking them all equal. Details are available at www.pnm.com.
Other options include servicing furnaces before the heating seasoncomes, which ensures both their safety and efficiency.
"We still have rebates for insulation, duct or blower tests,"Sponar said. "We will pay up to $500 if they qualify."