Austin natural gas prices will likely hold steady
Published 12:00 am Thursday, December 5, 2002
Some natural gas providers in the state are predicting gas prices will rise this month, but prices in Austin should stay where they were at last year at this time, according to an Austin Utilities official.
Walt Stevens, Austin Utilities support services director, said because a cost adjustment has been put in place, the prices will stay the same. Currently, natural gas prices are about 60 cents per therm (100 cubic feet). This is the same price as last month and similar to last year at this time.
"They are higher than they normally would be, but not any higher than last year," Stevens said, adding that gas prices increased in 2000.
The price, however, depends on how much gas residents use. In the winter, the more the natural gas is used, the more it costs, Stevens said. Austin Utilities does this to promote energy conservation, he said.
External factors can affect prices. Prices would increase if, for example, the United States was involved in a war, Stevens said.
Residents' gas bills may be higher than last year because the weather has been colder. Last winter was unusually mild, but the weather has been colder this year.
"That's the one reason it would be a little higher than last year -- because of the weather," Stevens said.
The Minnesota Department of Commerce's natural gas unit is estimating an average November bill of $86 and an average December bill of $121.
Because it has been colder this fall and perhaps because more people are out of work, demand for the state's energy assistance program has increased.
Since October, about 78,500 people have applied for energy assistance through the Low Income Home Energy Assistance Program. Last year at this time, only 56,000 people had applied.
Bruce Gordon, spokesman for the Department of Commerce, said a new application process that is easier for people who previously applied also could be the reason for the increase.
-- The Associated Press contributed to this report
Cari Quam can be reached at 434-2235 or by e-mail at cari.quam@austindailyherald.com