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
Posted in State-and-regional on Thursday, August 21, 2008 12:00 am | Tags: Energy Costs, Natural Gas, Electricity, Propane, Pubic Service Commission, Sourcegas, Rocky Mountain Power, Tristate, Megan Lee, Casper, Wyoming, August 21, 2008
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