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Winter forecast: higher utility bills

Summer fuel price hikes will lead to an average increase of $150 for the season, the government says.

October 08, 2008|Elizabeth Douglass, Times Staff Writer

Gasoline prices are falling, but energy bills are going up.

The lagging effects of this summer's jump in natural gas prices is expected to boost electricity and gas bills in California and nationwide, though the size of the financial hit will vary widely depending on the utility, the weather, home energy usage and the region's dominant fuel source.


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This winter, the average U.S. household will pay about $1,137 for heating -- up $150, or 15%, compared with last winter, the Energy Department said Tuesday. The increase reflects a combination of higher costs for natural gas, heating oil and propane as well as an expected weather-related uptick in consumption.

Heating oil jumped the most, raising estimated costs 23%, or $450, to nearly $2,400 for residents in the Northeast, the government said in its annual winter fuels outlook.

The cost of natural gas, the fuel that heats most California homes and runs most of the state's power plants, nearly doubled in the first half of the year, then dived back to more typical levels in recent weeks. The government said it expected natural gas expenses to rise 18%, or $155, to $1,010 for the average home during the October-March heating season.

However, with such wide fluctuations in fuel prices, individual customer bills largely will reflect when the utility bought or locked in the price for its winter supplies. The fuel-related rate increases set for California customers are expected to be well below the average cited by the Energy Department.

An increase of any size is a painful blow to consumers already facing a multitude of rising costs amid a deteriorating economy and job market, said Mindy Spatt, spokeswoman for the Utility Reform Network, a San Francisco consumer advocacy group. Late payments and power cut-offs are already on the rise, she said.

"What consumers can expect is higher bills at a time when they can least afford them," Spatt said. "Any time rates go up, more consumers are in danger of losing an essential service."

Southern California Gas Co., which serves a population of 20.3 million, said its customers could expect wintertime bills to be about the same or slightly higher this year than last.

The company's charge for the fuel itself fluctuates with the market price, and customers this month are paying 68 cents a therm, down from $1.23 a therm in July, said Denise King, spokeswoman for the Sempra Energy subsidiary.

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