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NS: Natural gas bills should hold steady this winter
 
CHAMPAIGN — If you heat with natural gas and live in the Midwest, there's a fair chance your heating bills this winter will run about the same as last year's, energy experts say.

Of course, the size of your bills depends on how cold the winter is.

But if temperatures parallel last year's, Midwesterners might not have to budget more for heating this winter, according to projections from the U.S. Energy Information Administration.

Nationally, average household heating expenses for those who rely on natural gas are projected to be up 4 percent from last year.

But in the Midwest, expenses are forecast to be about the same.

Midwesterners heating with natural gas are projected to have an average heating expense of $779 for the six-month heating season that runs through March 31.

That's a dollar lower than last year's average of $780. If the projection proves correct, it would be the lowest winter heating bill in at least seven years.

About 71 percent of Midwestern households heat with natural gas. The remainder rely mainly on electricity, heating oil, propane and wood.

Midwesterners who heat with electricity can expect to spend about $1,105 for heating this winter, the agency said.

That's down $4 from last year — but up markedly from the previous six winters.

People who use heating oil have the roughest circumstance. The agency says they can expect to see an 8.4 percent spike in their winter heating bill.

The agency forecasts they'll have average expenditures of $2,493 this winter, up from $2,300 last winter.

But if the winter is 10 percent colder than forecast, they'll pay about 22 percent more than last year, the agency said.

Area utilities agree natural gas prices have been relatively stable this year.

"We anticipate customer natural gas prices for this winter will be similar to prices paid last winter," said Scott Glaeser, Ameren Illinois vice president of gas and electric technical services.

Natural gas supply has increased due to rapid development of shale gas in the United States, Glaeser said in a news release.

Plus, demand for the fuel is soft due to sluggish economies, both at home and abroad, he said.

During last winter's heating season, Ameren Illinois customers paid an average of 61 cents per therm. This season the utility anticipates an average price of 62 cents a therm.

Ameren Illinois says it has adequate natural gas supplies for the winter heating season. Most of its natural gas supplies are hedged or "price protected" for the winter to insulate customers from volatility, Glaeser said. Nicor Gas said natural gas costs have remained fairly consistent over the last six months, but cautioned that "natural gas prices are volatile and can vary unexpectedly throughout the winter season."

Both Ameren Illinois and Nicor Gas have budget billing options that allow customers to spread payments out over 12 months.

Under the Ameren Illinois program, the average monthly bill amount is based on the last 12 months of usage. Payment levels are periodically reviewed and adjusted.

The U.S. Energy Information Administration's figures for fuel consumption include consumption for water heating, appliances and, in the case of electricity, lighting. More information is available at http://www.eia.gov.
Source