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Energy cost increases in Wyo will be long-term

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By MEGAN LEE
Star-Tribune staff writer

Thursday, August 21, 2008 2:09 AM MDT

Gas prices are going to be high -- maybe as much as 70 percent higher than last year -- according to the Wyoming Public Service Commission.

The commission held a winter heating conference to discuss the anticipated large, long-term energy cost increases for Wyoming customers and what customers can do to curb huge heating bills in the upcoming cold season.

"During the summer especially, we don't really tend to notice what our natural gas prices are," said Chris Petrie, chief counsel for the WPSC. "We didn't want people to be surprised when their prices are 30, 50 or 70 percent higher than they were last year. We didn't want to have a situation where everyone got that first really high heating bill in December or January before they took some action."

The energy costs will have a negative impact on every consumer, said WPSC Chairman Cindy Lewis, noting that high bills could cause a "heat or eat situation" for some low-income customers.

"Some people may find themselves making potentially dangerous choices between heating their homes at a safe temperature and buying enough food or even choosing to get necessary medications," Lewis said to an audience of interested groups and citizens. "Increasing energy costs are an issue for all of us as individuals, neighbors, friends, families, for those on fixed income, and ultimately for our communities as a whole. We're in this together."

Bryce Freeman, of the state's Office of Consumer Advocate, said the problem goes further than low- and fixed-income consumers. Middle-income energy customers will probably have difficult paying their bills this winter, too, he said.

A panel of officials from energy providers throughout the state discussed the outlook for their respective energy sources.

While a few years ago people would have laughed when told they'd pay $4 a gallon for gas, that reality is having serious effects on the United States, said Baron Glassgow, executive director of Rocky Mountain Propane Association.

Crude prices often perform inversely to the dollar, he said, so as the value of the dollar declines, the value of propane rises, making propane that much more expensive for dealers.

"For propane consumers, we think that costs will continue to trend up," he said. "How much, we don't know."

Len Mize, director of corporate communications for natural gas provider SourceGas, said that while no one knows exactly what gas prices will do, SourceGas customers should only see about a 15 to 35 percent increase over last winter's bills.

"The No. 1 goal I think we should have is to try to be stable, predictable and reliable," Mize said.

Customers with electric heat will find their heating choice beneficial this winter, said Mac McLennan of the Tri-State Generation and Transmission Association.

The electric market hasn't experienced the same kind of volatility that the propane and natural gas markets are experiencing, McLennan said.

Dave Mosier, manager of regulatory affairs for Rocky Mountain Power, agreed that Wyoming customers won't see a big increase in this winter's electricity prices, and noted that his company has some of the lowest prices in the country.

However, he added, electric heat customers will eventually see increases in their heating costs.

"Prices are rising, and we will be affected by it," Mosier said. "We expect price increases each year for the foreseeable future until these price trends end."

Contact Megan Lee at (307) 266-0589 or megan.lee@trib.com

Efficiency is key to lower bills

Keeping customers educated and informed about the value of efficiency is the best way to fight high energy costs, said Wyoming Public Service Commission official Chris Petrie.

Often, energy providers offer efficiency incentive programs for no or low cost to encourage customers to conserve.

For more information on energy efficiency programs, contact your energy provider.

Winter Heating Town Meetings

For a complete list of meeting times and locations, call the Wyoming Public Service Commission at (307) 777-7427 or visit http://psc.state.wy.us/htdocs/calendar_new.htm.

Aug. 27: Rock Springs, Rawlins, Cheyenne, Greybull, Sheridan, Buffalo

Aug. 28: Laramie, Pine Bluffs

Sept. 4: Gillette, Sundance, Newcastle

Sept. 11: Casper, Douglas, Wheatland

Sept. 15: Evanston, Kemmerer

Sept. 16: Pinedale, Jackson, Torrington, Lusk

Sept. 17: Lander, Ft. Washakie, Dubois

Sept. 18: Thermopolis, Worland, Cody

Sept. 19: Powell, Lovell


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Comments to this story.

Casper Resident wrote on Aug 21, 2008 7:20 AM:

" I guess it did a lot of good to allow all the drilling for gas in Wyoming. We were told that if we didn't allow a dramatic increase in drilling for natural gas we could expect our gas prices to go up dramatically. So we allowed the drilling and we are going to have dramatic increases anyway. There is no legitimate reason for our natural gas prices to be rising so fast this close to the source of the gas. It is our gas that we are practically giving away to the energy companies and then they are selling it back to us at ridiculously high prices. I say we throw out all the energy companies, capture our own gas for our use and take care of ourselves instead of the energy companies. I guess we are either all going to freeze to death over the winter or our employers are going to have to start paying a living wage so we can afford these energy costs that have gone through the roof. "

BULL wrote on Aug 21, 2008 8:30 AM:

" I suppose people will try to lay this off on the Democrats again. Bush & Cheney,s greedy energy policies have nothing to do with it. Pigs have wings too. "

enough already wrote on Aug 21, 2008 8:36 AM:

" We better find a way to reign in the energy sector before they completely destroy our economy. We cannot continue with 50% increases in energy costs annually, 50% increases in gasoline costs annually, and 20%-30% increases in everything else annually due to the increased energy costs. No wonder Americans have a negative savings rate for the first time since the great depression. Wages are not increasing at even a quarter the rate that everything else is increasing. If our heating costs go up 70% next winter, there will be thousands of people who will be unable to keep their homes heated to a safe temperature. Something's gotta give soon or we will be headed for an economic disaster that will make the great depression look like a walk in the park. It's time for dramatic change; we must start with changing our representation in Washington and Cheyenne; we need representatives of the people rather than representatives of special interests and big business. "

Realist wrote on Aug 21, 2008 8:44 AM:

" Unfortunately, the ones who will have the hardest time affording the high heating bills are the same ones who will have a hard time affording energy efficient equipment, doors, windows, etc. It's a catch 22. Can't afford the heat and can't afford the necessary improvements to avoid the high heating costs. I hope we can find a way to get energy costs under control before they have completely demolished our economy. "

RAM wrote on Aug 21, 2008 1:30 PM:

" BULL, It is well and widely known that Obama and Clinton has conspired to create this artificial problem backed by rich leftists like George Soros. There manipulation of the futures market using surrogates has been nothing short of treasonous in order to clinch a democrap win in the general election. "

thinking person wrote on Aug 21, 2008 1:41 PM:

" First the gas is not ours it is the companies that own the the fields and the rights to drill for it. the gas company and the customers are caught in the middle . the oil companies and the goverment are the only ones winning here. "

BULL wrote on Aug 21, 2008 2:45 PM:

" RAM ....hahaha...what sort of drugs are you on ? CLINTON ISNT THE ONE IN OFFICE RIGHT NOW. Why do all you Bush lovers stick up for that bunch of lying crooks every time their names come up in a greedy article. Gas was HOW MUCH when Bush took office ? The economy was in WHAT condition when Bush took office ? They dont have a very good track record RAM. I hope you have deep pockets because you can pay my part of their mess they have run up. "

Unbelievable wrote on Aug 21, 2008 3:26 PM:

" RAM, I hope you don't actually believe that crock of garbage that you are spewing. You are getting a little too paranoid here. Everyone knows that the cause of the energy crisis is the Bush administration's energy policies that have been crafted by their friends in the energy industry like Kenny Boy the Enron Guru who helped Cheney put together the energy policies that have caused energy prices to quadruple oever the last few years combined with the republican deregulation of the energy industry (Enron loophole) that has made it possible for the speculators to control the price and make insane amounts of money off the misery of the rest of the country. No matter how much you run your right-wing mouth, you will not be able to convince anyone with a brain that the democrats are responsible for the mess that Bush and the GOP have gotten us into. The only ones who will believe that are the blinded right-wing extremists like you who are not smart enough to look out for their own best interest. "

J Miller wrote on Aug 21, 2008 9:19 PM:

" Hello the Bush administration is not i n charge but the Democrats who run the Senate and the Congress .They make the laws and the President only signs them in you fools.This Congress/Senate has brought a record low amount of laws less laws then any ethers in History.The Democrats are the ones to blame and quit trying to Brain wash the people.They see rite thru you. Why do you think Obama is going to lose. "

WyomingGal wrote on Aug 21, 2008 11:26 PM:

" J Miller, the democratic congressional majority has only been in place for two years. The Bush administration has been in power for the last 8 years and until the last two years, the congress was republican dominated. Enron and it's 'loophole' happened on the republican watch.
Republicans say that they want less government, yet you rail that the democrats have brought a record low number of new laws. So which is it to be? Less government with fewer new laws, like the democrats have done, or more intrusion in our daily lives, tax cuts for the wealthy, and bridges to nowhere when our infrastructure is falling apart like the republicans did?
My advice to you is to try again, and next time, please you a dictionary or spell check before you post as it makes you look rather imbecilic when you fail to do so. "

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