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| Thu, Nov. 20, 2008 |  |
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Winter heating bills to rise behind natural gas prices, PSC warns Saturday, Aug 2, 2008 Arkansas News Bureau LITTLE ROCK - Natural gas utility customers should prepare for "significantly higher" natural gas bills than last winter, the Arkansas Public Service Commission warned Friday. The warning comes on the heels of the federal Energy Information Administration's release of its Short-Term Energy Outlook, which anticipates natural gas wellhead prices to be between $11.62 per one thousand cubic feet (Mcf) and $11.86 per Mcf for the 2008-2009 heating season. Based on those prices and information from gas companies, CenterPoint Energy residential customers can expect a 24 percent hike in bills, Arkansas Western Gas Co. residential customers can expect a 31 percent increase, and Arkansas Oklahoma Gas Corp. residential customers should plan for a 48 percent rise, the commission said. Changes in natural gas prices in the coming weeks could change expectations, officials said. Natural gas utilities in Arkansas recover gas costs from customers through a Purchased Gas Adjustment Clause mechanism, which appears as a line item on bills. The utilities only recover from customers the actual cost of the gas and its transportation. Costs are subject to review and approval from the PSC. To prepare for the cost increases, the commission recommends signing up the levelized billing option, conserving natural gas and weatherizing homes. |
