Heating costs may hurt September 20, 2000

Price increases likely throughout winter

By Anthony Farmer Poughkeepsie Journal

The leaves beginning to turn and the mercury dropping into the 50s at night are sure signs that autumn is approaching.

And with the fall season being officially ushered in Friday, there couldnt be a better time to start thinking about winter.

Heating oil and natural gas prices are already high and are expected to go higher as the season wears on, so homeowners may want to do some planning to make sure they arent caught short when the first cold-snap hits.

I think last year was an eye-opening experience for a lot of oil heating consumers, said Greg Mihailovich, associate director of the New York Public Interest Research Groups fuel buyers group. A lot of them were caught unaware.

Heating oil peaked at $2 a gallon last winter, and the federal Energy Information Administration is predicting prices will be even higher this winter.

While the unexpected jump in prices caught many off guard, those who took part in NYPIRGs fuel buyers group had their costs capped at 89 cents a gallon for the entire heating season.

But dont expect the same kind of deal this year, with prices capped at just about $1.29 a gallon, Mihailovich said.

Some mid-Hudson Valley residents are already thinking about the upcoming heating season and the inevitable high prices.

I havent done anything yet, but Ive thought about it, said Charles Bailey of Poughkeepsie.

Bailey said none of the many explanations offered for the high prices sounds reasonable to him.

I think its just to make more money, he said. If they wanted to keep the prices low, they could.

President Clinton has established a two million barrel heating oil reserve for the Northeast to help offset any shortages that could arise during a prolonged cold spell. U.S. Energy Secretary Bill Richardson said Tuesday the administration is considering releasing oil from strategic reserves to combat home heating fuel price spikes. AT A GLANCE HOME HEATING SAVINGS The New York Public Interest Research Group fuel buyers group can be contacted at (845) 452-1434 or (800) 695-4645. The Community Action Agency can be reached at (845) 452-5104, ext.12. NYPIRG offers the following tips for helping to lower heating bills: - Have your system tested for efficiency at least once a year. - Have your system cleaned annually by a professional, which can save 10 percent on your heating bills. - Turn down the thermostat at night. Energy-efficient winter settings are 68 degrees in the daytime and 55 degrees at night. - Keep fireplace dampers closed unless a fire is going. - Use kitchen, bath and other ventilating fans sparingly in the winter. - Use heat reflectors between the radiator and wall to direct heat back into the room. - Use a room humidifier or keep shallow pans of water on the radiator. Moist air makes you feel warmer than dry air at the same temperature. - Dont set the thermostat too high when turning it on. It wont warm up faster but can cause the thermostat to overshoot the desired temperature, wasting energy. - Dont block radiators with furniture or pull drapes in front of them.

With 2.9 million households in the state relying on oil to heat their homes, 2 million barrels isnt much  especially when you consider that other states will share in that as well, said Thomas Collins, spokesman for the New York State Energy Research and Development Authority. With heating oil inventories down 38 percent from a year ago and prices already higher than this time last year, even higher prices are on the horizon, he said.

Its out there, dont be surprised by it, Collins warned. Its a great time right now to start the season with a full tank of oil.

Hoping for a reprieve

Daryl Juliano, co-owner of Juliano Fuel Oil Corp. in Wappingers Falls, said the skyrocketing prices have to stop at some point.

Theyre talking about $2 a gallon, she said. I dont think the economy can withstand it to remain that for that long.

Juliano did offer its customers from last year a three-week period to join a prebuy program where they could lock in their price for the season.

Poughkeepsie resident Doug Lancaster said he wished he had thought ahead and found a company offering a locked-in price.

Im sort of regretting it now, Lancaster said. Im still puzzled by why were so short of heating oil in the Northeast.

Juliano said she too is puzzled that the big oil companies only recently announced that production was behind.

They had to see it coming last year, she said of the continued high prices. I cant believe they waited until August to start saying were at a 10-year low. Its been happening year after year.

But besides finding the best deal on oil, homeowners can also take other steps to bring down their costs.

The Dutchess County Community Action Agency offers a weatherization assistance program for income-eligible residents. The program also offers the service for a fee to those who dont qualify.

We need people to apply now so we can get to them before the cold weather starts, said Rob Rock, an energy auditor with the program. Wed really like to help as many people as we can this year.

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-- Martin Thompson (mthom1927@aol.com), September 20, 2000