Natural gas costs to increase by one-third
By
Michael Sanserino
and
Michael Sanserino |
POSTED AT
12:00 AM ON Nov. 2, 2005
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As experts predict a colder-than-usual winter, Gov. Mitch Daniels urged Indiana citizens to conserve home- heating fuel to minimize the burden of increased natural gas costs.
Gas prices have doubled compared to last year because of increases in wholesale natural gas prices, according to an Oct. 13 statement from the governor's office. The Vectren Corporation, supplier of natural gas to two-thirds of southern Indiana and the Dayton, Ohio, area, warned customers their natural gas bills could be 28 to 32 percent more expensive than last year's.
To help combat rising heating costs, the governor's office and Vectren have provided a list of tips to conserve fuel including providing better insulation.
But Indiana State Sen. Vi Simpson, D-Bloomington, said the families who will suffer most from increased heating bills can't afford to improve home insulation.
"Maybe people will have to move in with the governor in the new governor's mansion so they can stay warm this winter," Simpson said. "Until the federal government ... recognizes that this is a national problem ... (the natural gas industry) should not be an unregulated market-driven part of the economy because, in some cases, it's a life or death issue."
While IU relies mainly on coal for its heating, one-third of the University uses natural gas, said Mark Menefee, IU's assistant director of utilities. A unit of coal currently costs $1.65, but a relative unit of natural gas costs between $12 and $14, Menefee said.
Ten million square feet of the University property receive heat through steam created in a process that requires coal burning. The heat is then pumped out from IU's central heating plant. The buildings in the other 5 million square feet require boilers that are heated by natural gas.
On a peak energy day last year, IU's heating bill reached between $58,000 and $74,000, which comes from the one-third of campus heated by natural gas.
Menefee said the University has researched ways to increase its use of coal, but called the rise of natural gas prices "surprising."
Charlie Matson, special projects engineer for the IU engineering services division, said the University has made progress cutting back its use of natural gas. At one point, the central heating plant used 75 percent coal and 25 percent natural gas to boil water. Now it uses less than 1 percent natural gas, Matson said.
Next week, the University will begin to adjust thermostats in preparation for winter, Matson said. Most IU buildings are heated to about 68 to 69 degrees while students are in the buildings.
Matson said students can also help conserve fuel.
"We really want students to close windows when the room is vacant," said Matson, who also suggested keeping windows closed unless completely necessary. He also urged students, faculty and staff to refrain from adjusting thermostats and limit the use of hot water.
Off-Campus Residents
The South Central Community Action Program, a non-profit social organization located in Bloomington, helps low-income households cover winter heating costs.
"Their utility bills in the winter time could be quite a bit of that money," SCCAP's Energy Assistance Program Coordinator Christine Combs said of Bloomington residents. "A lot of people start to make choices when their bills start to get out of control, and I think this is going to be a year when bills start to get out of control."
Combs said the number of families eligible for assistance has increased since 2004.
Currently, Indiana has a heating moratorium from Dec. 1 to March 15 during which gas companies can't shut off a household's gas line for failure to pay bills.
Calls to Bloomington Mayor Mark Kruzan were not returned by press time.
IU students living off campus can limit their heating costs by turning down the thermostat and increasing their insulations in their home, Menefee said.
For more information see
SCCAP's Web site at www.sccap.monroe.in.us.