September 25, 2000

Heat bills may break winter budgets

Help available for consumers to offset high cost of oil, natural gas

By Kurt Van der Dussen, Herald-Times Staff Writer With the October-to-April heating season fast approaching, the cost of home heating fuels is rapidly rising.

Those who use heating oil and natural gas can expect big increases.

Natural gas companies are claiming a tight supply situation, Indiana Gas Co. spokesman Mike Roeder said. That is driving up the price natural gas suppliers charge distribution companies such as Indiana Gas.

"The range that we're looking at is 20 to 30 percent" in increases, he said. "And if we have a normal winter, it will magnify the problem" because the last two winters have been warmer than normal.

Meanwhile, the global tightening of crude oil supplies that drove up gasoline prices this summer is also having a big impact on heating oil costs for this fall and winter, making them a hot political issue particularly in the Northeast.

In south-central Indiana, Dennis Clark, the longtime owner of Monroe Oil Co., said heating oil prices of 95 cents per gallon last winter already are up to $1.36 to $1.40.

At Farm Bureau White River Co-op, petroleum sales supervisor Audrey Myers said the No. 1 oil for outside storage tanks is running $1.35 per gallon, while No. 2 oil for underground or indoor tanks is $1.35.

"We have no clue on how much it's going to go up, but from what everybody's been saying, it's going to go up," she said.

"Truthfully, nobody knows," Clark agreed. But his guess is that it's going to go higher by "at least 20 cents" per gallon before the heating season is over.

Fortunately, heating oil buyers have an alternative to the big hits they could take for the three or four peak heating months. Both Farm Bureau and Monroe Oil Co., for example, offer customers payment plans that spread costs out over the year.

Clark said his company has an 11-month July-through-May plan where the cost of one's oil is distributed over 11 equal monthly payments. Myers said Farm Bureau has a budget plan that spreads the payments from July through April.

Similarly, Indiana Gas for years has had a program where people can spread their gas bills out over the year in equal monthly installments. And now, Roeder said, it's possible for the company's customers to enroll at any time.

Roeder said Indiana Gas customers can enroll in the "Balanced Payment Plan" by calling (800)-777-2060, following the menu options or talking to a customer service representative.

In addition, there are support programs for elderly or low-income people who just can't afford the higher costs. Cinergy, for example, has such a program for its harder-up customers that other utility billpayers can voluntarily contribute to.

South Central Community Action Program also has a longstanding utility bill assistance program, with detailed information available from CAP's Jean Robinson at 339-3447, extension 233, in Bloomington.

Other South Central CAP numbers are 988-6636 for Brown County, 829-2279 for Owen County and 342-1518 in Morgan County.

In general, the program makes the elderly, disabled and people with small children or other crisis situations the priority. Eligibility is determined case-by-case on a variety of criteria.

Applicants must have annual household incomes no higher than 25 percent above the federal poverty level  $14,063 for a household of two or $17,683 for a household of three, for example.

Service to them can begin on Nov. 1. As of Nov. 15, other applicants will be considered for whatever funding remains. Those who qualify for CAP assistance can expect $215-$230, with about $50 for electric bills and the rest for heating costs.

Robinson is urging both CAP clients and other people to check out their options now, before they get blindsided by the higher heating bills starting in November or December after the weather turns cold.

"This is not only our clients, but all the citizens in the area" who face the problem, she said.

Meanwhile, while Clark's only too happy to sell lots of his heating oil, the Monroe Oil Co. owner says there are several things people can do to lower their bills.

"If you see the curtains blowing, you know you are using a lot of oil," he joked, referring to windows that either are open or so leaky that the wind can blow through them.

The key to cutting heating costs, he said, is a thoroughly insulated house. A well-insulated house, he said, "will cut your fuel bills in half."

In turn, he said, having your furnace checked to make sure it's in clean and efficient working order will save costs.

When you're away from your house for a day or more, turn your thermostat to 65 degrees even as low as 62  and down to 68 at the most at night when you're bundled in bed.

And if you've got a wood-burning stove, using it even a few hours a day will lower your regular heating bill, Clark said.

Reporter Kurt Van der Dussen can be reached at 331-4372 or by e-mail at kvd@heraldt.com.

http://www.hoosiertimes.com/stories/2000/09/25/news.000925_HT_A1_PTF06287.sto

-- Martin Thompson (mthom1927@aol.com), September 25, 2000