Higher gas utility bills on horizon for Texas residents

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Higher gas utility bills on horizon for Texas residents By RODNEY CARMICHAEL Tribune-Herald staff writer

Jack Frost will be nipping at your nose and your pocket this winter as the cost of heating your home may rise as much as 50 percent in Texas, according to Karl Nalepa of the gas-regulatory Texas Railroad Commission.

While the increase will affect all households that utilize gas-powered heating systems, low-income households will be hit hardest.

Last year around this time, natural gas was selling at about $2.50 per cubic foot. That price has more than tripled.

"It's my understanding that the natural gas prices for January crossed the $8 line today," said Chris Schein of TXU. "That's quite a bit higher."

The natural gas industry blames the dramatic increase on the continued rise in gas prices it pays and the prediction of a colder than average winter.

Most heating units and hot-water heaters are powered by natural gas. However, natural gas also supplies about 40 percent of the fuel used to generate electricity in the Texas, according to Terry Hadley of the Public Utility Commission.

Central Texans can expect this winter to be about 5 percent colder than last year, according to forecasts. For low-income families, that temperature decrease will be harder to overcome financially.

While Texas households earning more than $50,000 per year spent only 4 percent of their income on energy-related costs in 1997, households earning less than $10,000 annually spent nearly one-third of their income on energy-related expenses, according to a study by Americans for Balanced Energy Choices.

"Nobody should ever get into a situation where they are choosing between heating their home and feeding their family," which is why TXU provides payment options to those who think they'll have a hard time meeting their payment deadlines, Schein said.

Many gas utility consumers need options such as payment assistance. TXU generally refers such customers to social service organizations such as the Economic Opportunity Advancement Corporation, the Salvation Army and Caritas.

Such organizations determine how much assistance families need by assessing their incomes, expenses and number of my family members.

Many organizations are still backlogged from providing summer utility bill assistance.

"We're still paying off electric bills from earlier this year," said Paulene Ruiz of Caritas. "Normally, we pick up more donations during the Thanksgiving and Christmas holidays so that will help us out some."

At Caritas, assistance is usually limited to a one-time donation of $35 per season.

The Waco Baptist Association's Operation CRISIS has depleted its utility assistance fund and won't be able to help the poor pay utilities for at least 90 days, according to a spokesman.

TXU sent out notices about a month ago to prepare customers for the expected increase. Schein suggests that customers who think they'll have difficulty paying their bills on time should call well in advance of the deadline.

"We want them to call us," Schein said.

Rodney Carmichael can be reached at rcarmichael@wacotribune.com or 757-5746.

http://www.accesswaco.com/auto/feed/news/local/2000/12/05/976068844.23355.7952.0074.html

-- Martin Thompson (mthom1927@aol.com), December 06, 2000


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