By Sara Quam
Homeowners using gas heat may feel like they're better off burning money this year.
Some homes saw their bills double in a month, but local gas providers aren't the ones getting rich off this cold winter. Wholesale prices have increased more than 300 percent in the last 12 months and 58 percent just since December 2000.
Even though homeowners are feeling a financial crunch, not many have applied for fuel assistance. Southwestern Minnesota Opportunity Council can help pay some heating bills for qualified people.
Gerrie Adamson, local SMOC representative, said she thinks most people who may benefit from it, aren't aware of the program and just haven't applied.
Guidelines for qualifications are set up by gross wages for three months: one person can make $4,364; a family of two can make $5,707; a family of five can make $9,735.
Qualifying families cannot have more than $25,000 in assets, not counting the home and some transportation.
Adamson is in her SMOC office at 319 E. Lincoln from 9 a.m. to 1 p.m. weekdays and can be reached at 283-2454.
The state also offers further information about the Low Income Home Energy Assistance Program at 1-800-657-3805.
Customers who are having difficulties paying their heating bills can apply for assistance there. Financial assistance is paid in a lump sum directly to the utility.
Why so high?
Recent wholesale natural gas price increases can point to several factors including limited supplies, reduced storage, greater industrial usage and winters colder than in recent years.
Because natural gas prices were relatively low during the late 1980s and early '90s, a number of electric energy utilities built new generation facilities that use natural gas rather than coal to take advantage of those low prices.
The utilities have now increased the overall demand for natural gas, even though natural gas usage by residential customers has declined during the same period of time.
The Minnesota Public Utilities Commission generally prohibits energy companies from shutting off a customerÕs heat from October 15 through April 15 due to non-payment of bills.
The Senate Telecommunications, Energy and Utilities Committee will schedule another hearing on the issue. It's expected that legislation will be introduced to provide additional financial assistance to help consumers.