A high-priced winter

The recent low temperatures have caused a high increase in heating bills, forcing some students to rethink their budgets.\nCompared to last year's winter, temperatures in Indiana this year have decreased by as much as 60 percent, causing a large demand for natural gas from energy companies. \nThe intense demand from customers has caused energy companies to replenish their natural gas supply at high prices. Consequently, residential heating rates have gone up significantly since last year and are expected to increase even further in March.\nCustomers of Vectren Energy Delivery can expect an increase of 46 percent from the average March gas rate. Vectren services over 500,000 customers in central Indiana.\n"The low temperature we have had this winter have created such a high demand that the market price of natural gas has really gone up," said Mike Roeder, a spokesman for Vectren. \nSince last winter, the average monthly heating bill has increased by about $40 to $50. But a rise in heating prices is not the only increase energy companies have noticed this winter. Customer complaints over the price increase have become an everyday occurrence at Vectren, Roeder said. \nCities like Bloomington, where many large and old houses line the streets, are already at a disadvantage when heating efficiency is a concern, he said. More often than not, older buildings have poor insulation and are consequently more expensive to sufficiently heat. \nRecently, junior Mark Hoffman and his roommates were greeted with a $320 heating bill -- $40 dollars more than their two previous heating bills. Hoffman said the high cost of heating has forced him to reorganize his monthly budget.\n"Normally, I'd expect to pay a little more than $100 for all of our utilities," Hoffman said. "But in the past few months, I have had to pay that much money just for heating alone. I've even had to cut back on money that I used to spend on food and other stuff."\nDespite the towering natural gas rates, energy companies are not out to make a profit. The Indiana Utility Regulatory Commission prohibits energy companies from the ability to make a profit on the sale of natural gas.\nAccording to Vectren's Web site, the company purchases as much natural gas as they can hold during warmer months when prices are down, and therefore benefiting customers with lower rates. When their supply begins to run thin during the demanding winter months, Vectren begins to purchase the higher priced gas on as-needed basis, causing gas bills to increase. But if the IURC believes an energy company's price increase is too high, it can force the energy company to refund their customers with a check or credit on the customers' account.\nDespite the imminent high-priced heating bill that will financially hurt many Indiana residents, Roeder said residents could reduce their heating rates by more efficiently maintaining the energy used in their homes.\nNonetheless, Hoffman cannot help but wonder if the demand for natural gas is allowing the electric company to take advantage of him and his roommates.\n"We never have the thermostat higher than 65 degrees, and we still can't get away with a heating bill below $280," he said. "I can't help but feel that they're trying to pull something over on us"