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Heating Bills to Jump This Winter
October 18, 2007
The U.S. Department of Energy (DOE) predicts that
heating bills for just about all Americans will rise this winter.
The DOE Energy Information Administration issued its annual winter
price projections last week. They indicate that average heating
bills will jump 10% or more this winter across the country, pushing
up the average U.S. heating bill up to about $1,000.
Most of us in Colorado pay that plus a chunk of
change because we live in a cold climate with a long winter heating
season. People heating with propane, about 6% of Colorado
households, will see the biggest price increases. About 16% of
Colorado households heat with electricity, and these people probably
pay the most for heating.
The rest of us ─ about 75% of households statewide
─ heat with natural gas, which is historically the cheapest fuel. In
fact, Coloradans are used to paying some of the lowest prices in the
country for natural gas because the state is a relatively large
natural gas producer (fifth among all states) and shipments out of
state are constrained by pipeline bottlenecks. This has led to a
local oversupply and lower prices than the national average.
In early 2008, natural gas companies are expected
to complete the Rockies Express Pipeline between the gas fields in
the Colorado Western Slope to the Midwest. When that happens,
economists predict that Colorado consumers will pay the national
market rate for natural gas. DOE predicts this market rate will be
$13.14 per thousand cubic feet by mid-winter.
DOE points to rising global prices for fossil fuel
suppliers, especially for oil and natural gas, as the cause of the
increases this winter. Crude oil futures were trading on the NYNEX
exchange yesterday at $87.06.
For background, read an article in the October 10
edition of the New York Times titled "Sharp Rise in Winter Heating
Bills is Forecast."
http://www.nytimes.com/2007/10/10/business/10energy.html
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