Nevada County Picayune and Gurdon Times Newspaper Archive

Increased Gas Bills Expected This Winter

Don't be alarmed when your gas bill is higher than normal this winter.

This, according to Reliant Energy-Arkla spokesman Margaret Preston, is because the cost of gas for the company is increasing as well.

She said this is an issue of supply and demand and Arkla isn't actually raising its rates. The company Arkla buys natural gas from has raised its rates from $2 per 100,000 cubic foot to $5 per 100,000 cf, with Arkla adding nothing to this cost.

Preston said the Public Service Commission requires utilities to shop around for the best price for consumers, and, at this time, this is the best price Arkla could find.

Part of the reason for the rise in gas prices, she said, is because of the summer heat. Many electric utility companies use natural gas to generate electricity, and with the summer being hotter than usual, they used more gas to generate their product.

In addition, she said, this is not only a statewide problem, but a national situation, as the price has gone up across the U.S.

"Even if we have a normal winter," Preston said, "it will take more gas to stay warm. The weather affects gas bills as well."

Arkla, she continued, is making no profit on this increase. The company makes its money on distribution, and hasn't raised this rate for more than four years.

Right now, Preston said, the issue is one of supply and demand. When the demand was low companies weren't drilling or producing. With the increased demand, prices have gone up.

According to a company release, the wholesale market price of natural gas has reached near record levels in the past several months, with distribution companies, such as Arkla, having to pay these higher prices.

In turn, these increases are passed on to the consumer, with the bills possibly being two or three times more expensive than last winter's bills.

Arkla suggests its customers sign up for levelized billing, as this can help avoid large gas bills this winter.

Under this option, the company will not charge month from month to month, keeping the bills more balanced spread out over the entire year.

Those with central heat should turn down the thermostat at night and whenever the house will be empty for two or more hours. It takes less energy to warm a cool house then to maintain a warm temperature all day or night.

Have heating systems checked out and properly maintained to make sure they are running at peak efficiency. Make sure to check, clean and/or replace filters every month during the heating season.

Insulate wherever possible in the home, including ceilings, floors, walls or the attic. This will help keep the heat inside the home.

Check the house for air leaks, making sure they are sealed to slow the rate cold air can enter a home. Caulk windows, weatherstrip door frames, close fireplace dampers and shut off heat to unused rooms in the home.

Arkla, Preston said, still inspects heating units for $48.

For more information, or to sign up on levelized billing, call Arkla toll-free at 1-800-992-7552.