Projected Heating Costs, Natural Gas Supplies Estimated for This Winter

The Public Utility Commission this week held its annual briefing on the availability and pricing of natural gas and other fuels for the winter heating season.

The Energy Association of Pennsylvania, PECO Energy Company, AmeriGas, and the Department of Public Welfare advised the PUC that they are prepared to serve utility customers and assist them for the upcoming winter.

J. Michael Love, President and CEO of the Energy Association of Pennsylvania, said there is more than adequate supply to meet the upcoming winter demands. On average, consumers relying on natural gas can expect to spend about 10 percent more than previously.

Love reported the U.S. Energy Information Agency released its annual outlook for winter heating fuel costs with its October Energy Outlook. The report noted this breakdown on expected, average energy costs for households in the Northeast—

· Propane – expect to pay $2,262 or 21 percent more this winter than last;

· Heating Oil – expect to pay $1,827 or 21.9 percent more than last winter;

· Natural Gas – expect to pay $1,212 or 10 percent more than last winter; and

· Electricity – expect to pay $1,432 or 7.1 percent over last winter.

Amy Hamilton, Manager of Gas Acquisition and Planning for PECO Energy Company, reported that PECO will have sufficient supplies to meet demand this winter and is seeing prices higher for the entire Northeast region.

According to J.P. Ghio, Manager-Assets and Wholesale Services at UGI Energy Services, the U.S. propane inventory remains below the five-year average. Customers can expect to pay more for propane as the levels stay low.

Edward J. Zogby, Director of Policy for the Department of Public Welfare, presented the Low-Income Home Energy Assistance Program (LIHEAP) program's plans for the assisting Pennsylvania consumers this winter. (See separate article on LIHEAP.)

William Hall, from the Public Utility Commission, provided an overview of natural gas usage and infrastructure in Pennsylvania.

Choosing Lower Cost Suppliers

The PUC encourages natural gas customers to take steps to reduce natural gas heating bills by looking for lower cost suppliers which customers may do under Pennsylvania’s utility choice program.

Other Tips

Find other tips for lowering natural gas heating bills by going to the PUC’s Prepare Now for Winter Gas Prices webpage.


11/9/2007

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