Students paying their own utilities can expect to see an increase in their We Energies heating bills this winter. The Milwaukee-based utility forecasts a rise of 40 to 45 percent.
Recent College of Arts & Sciences graduate Laura Arvelo, who lives on North 21st Street and Kilbourn Avenue, splits her house's heating bill three ways but is still upset with the projected increase.
"We already try to conserve energy by turning off lights and fans when we're not in a room," Arvelo said. "That has helped our We Energies bills in the past."
Students in Campus Town East, where heating is included in rent, will not be as affected by the increase.
"We'll still have to pay for electricity, but it will be very good to save the money," said Greg Entwhistle, a junior in the College of Arts & Sciences.
Beth Martin, spokeswoman for We Energies, said 70 percent of a customer's heating bill covers the cost of natural gas, which has been rising consistently over the past five years.
We Energies has multiple ways to keep prices lower for its 1 million natural gas heating customers in Wisconsin, according to Martin.
Methods include trading on the market using financial tools such as contracts to secure the best prices for customers and to keep gas in storage during the summer when prices are cheaper.
Increase predicted before Katrina
The price of natural gas before Hurricane Katrina was $9 per unit, according to Martin; prices are now estimated to be $11 to $12 per unit.
Natural gas is measured in units called therms. The average residential natural gas usage is 1,000 therms annually, according to We Energies.
Jonathan Cogan, a spokesman for the Energy Information Administration, a division of the U.S. Department of Energy, said the Department of Energy already expected increases in the price of natural gas before Hurricane Katrina.
The total cost of bills for natural gas customers across the Midwest could increase 69 to 77 percent, Cogan said.
"Katrina just upped the ante, so to speak," Cogan said. "The 69 to 77 percent has to do with initial gaps in information concerning damage to offshore gas production in the Gulf Coast region."
The Gulf Coast accounts for 20 percent of natural gas production in the United States, but even before Hurricane Katrina domestic production had been flat.
Another factor pushing gas prices up concerns Canada, which provides 15 percent of the United States' gas. But importing this gas makes it more expensive.
"Canada has less and less natural gas to export," Cogan said.
Mild winter expected
Ultimately, heating bills will depend on the type of winter the Midwest will have this year, Cogan said.
The Farmers' Almanac, an established meteorological publication, predicts a mild but snowy winter for Wisconsin.
The Almanac's editor, Peter Gelger, said temperatures would be more sporadic this year than in years past.
"This winter will not be as bitter," Gelger said. "It will probably be a little warmer than average."
Martin provided a few tips for keeping bills down during the six-month heating season.
"Turn down the thermostat at night when you're going to bed and when you're out of the house," she said. "Use compact fluorescent light bulbs because this helps reduce your electric bill and uses less energy. If you live in a house, weather strip and seal the windows — the goal being to keep in the heat. Also, clean and replace furnace filters on (a) monthly basis and check to make sure vents are not blocked."
We Energies forecasted an 11 percent increase in heating bills for the 2004 season, but customers only ended up paying a 10 percent increase. The increase was a direct result of pricing of natural gas on the market, Martin said.
This article was published in The Marquette Tribune on September 13, 2005.