Algis J. Laukaitis / Lincoln Journal Star | Posted: Sunday, December 11, 2005 6:00 pm
The first official day of winter is still a few days away, but some Nebraskans already are feeling the pain of soaring fuel costs and frigid weather.
“We’ve had about 1,400 more households (ask for help) than we did at this time last year,” said Mike Kelly, a program specialist with the state Health and Human Services System.
That agency administers the state’s Low-Income Energy Assistance Program, which has $17.4 million to distribute this year to low-income families who qualify. But that total may not be enough.
“We’re seeing some households that we’ve never seen before,” Kelly said. “It’s pretty much statewide.”
A combination of skyrocketing energy costs, colder weather and job layoffs are forcing people to ask for help in paying their utility bills, Kelly said.
After an earlier lull in the market, natural gas prices jumped more than 9 percent last week; natural gas futures reached a record high Thursday as temperatures plunged to near or below zero in many places across the country.
Hardest hit was the Northeast, which consumes most of the country’s natural gas. Consequently, prices shot up as buyers and sellers scrambled to ensure an adequate energy supply for the remaining winter months.
Earlier last week, the Energy Information Administration warned that average U.S. households heating with natural gas probably will spend $281, or 38 percent more, for fuel this winter than last winter.
The Lincoln Salvation Army’s HeatShare Program received 120 calls asking for help last month but could help only 61 people, said Leta Powell Drake, director of development and community relations.
“The big crunch will be coming next month with this brutal weather,” she said.
The Salvation Army spends about $5,000 per month to help low-income families pay their utility bills. Money for the HeatShare program comes from donations. Aquila, the city’s natural gas supplier, recently gave $36,000 to the program.
Louise Carroll, 66, is one of the fortunate recipients of HeatShare help. She got $178 from the HeatShare program to pay her natural gas bill.
“It’s hard, very hard,” Carroll said. “The bills are high. You have to take from Peter to pay Paul. I know there are a lot of people going without.”
Natural gas customers got a break in November because the weather was relatively mild. Temperatures for the month were 2.8 percent higher than last year and 14 percent higher than the 30-year average for November, according to Mary Simmons, a spokeswoman for Aquila.
Even so, some people, especially those on Aquila’s budget plan, saw higher bills in December. Simmons said the adjustment was needed so that at the end of the 12-month budget period, customers won’t be surprised with a big bill.
Residential customers won’t see the effect of the recent cold snap until their January bills. And the weather, though warming over the weekend, had been very cold.
“The first seven days of December were 70 percent colder than last year and 60 percent colder than the 30-year average,” Simmons said.
Lower temperatures and an increase in wholesale gas costs will mean that Lincoln residential customers will see about a 23 percent increase in their gas costs in January, she said.
Here’s what the Energy Information Administration predicts average U.S. households will pay for other heating fuels this winter compared to last: fuel oil, $225, or 21 percent more; propane, $167, or 15 percent more; and electricity, $46, or 7 percent more.
As part of its winter policy, Aquila gives customers an additional 30 days to pay their bills after they receive a disconnect notice. Simmons said the company also will not shut off natural gas service if the National Weather Service forecast is 30 degrees or lower.
“We encourage people to call and make arrangements to pay something,” Simmons said. “We’ll work with them.”
Reach Algis J. Laukaitis at 473-7243 or alaukaitis@journalstar.com.