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Saturday, Nov. 16
The Indiana Daily Student

Residents spending more to stay warm

Homeowners brace for large winter gas bills

The high natural gas prices in Indiana will force those who use gas to heat their homes to dig a little deeper into their pockets this winter. Many local residents are worried about how this will affect their budgets.\nConsumers continue to cope with inflated gasoline prices, and the dramatic jump in natural gas prices has them wondering when relief will arrive.\nBloomington resident Ruby Martin said she has a bit of an uneasy feeling going into the winter months.\n"From what I've been reading in the paper, I'm concerned," she said. "If it goes up too high, what are we going to do? It doesn't look like it's going to get any better."\nThe situation is not likely to improve for the time being, according to Dave Osmon, controller for area gas distributor Peoples Gas and Power Co. He said it might take as long as 12-18 months for the market to correct the trend. He said Peoples sent letters to their customers earlier in the year explaining why costs are higher.\n"When the price of natural gas fell below two dollars a year ago, there wasn't much incentive for new drilling to occur," Osmon said. "So the supply fell down, but we've still had a fairly robust demand. Now prices are in the $4-$5 range, but it takes a long time for newly drilled gas to get to the market, so the supply is not catching up with the demand."\nSome residents might have to cut back or eliminate other items in their budget to allow for the increase. Bloomington resident Lois Noel said she plans on trying to cut down on the amount of gas she uses.\n"Just like years past, (my husband and I) have made sure our windows are sealed and our house is insulated well," she said. "But, for this year, we have discussed turning down the thermostat and wearing warmer clothes to keep from running up a large bill."\nLisa West, marketing manager for Amerigas, said there are other measures consumers can take to calm their heating anxiety. West said some companies, including Amerigas, offer price protection programs where the customer signs a year-long contract and locks onto a fixed monthly price.\n"Around 40 percent of our customers are on this program," she said, "and they are paying an average of 25 percent more than they were last year at this time. But, if you're not on a price guarantee program, you will be paying 45 percent more than you were last year, possibly even higher."\nWest said that currently Amerigas' costs are 70-75 percent higher than a year ago to get the same amount of gas, so any customer who signed up for the program will be glad they did.\n"We're facing all-time highs now, prices are re-writing the record books," West said. "Absolutely, positively, get set up on a price protection program wherever you can if you are worried about this winter. It's the best option."\nPeoples Gas and Power Co. doesn't have the amount of customers to offer a price control program, but Osmon said there are other ways of dealing with the high costs.\n"First of all, check and make sure your system works correctly and efficiently," he said. "But if the burden of the increasing costs is substantial enough and you think you're going to be in trouble, you need to contact your local utility and get on a budget payment plan."\nOsmon said a payment plan allows customers to make the same payment each month and gives them greater stability in their budget planning.\nHe also said he doesn't think too many people will turn to alternative methods of heating.\n"Natural gas is still the most economical type (of heating)," Osmon said. "The savings over other ways may not be as great this year, but the savings still should be there"

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