By By CHRIS O'NAN / Niles Daily Star
Although there is really know way to tell now just how cold or warm the winter will be in 2005 and 2006, one this is certain - heating costs are going to rise substantially before December.
But just how much is hard to tell, said Tim Lubbers, director of marketing and corporate communications for SEMCO Energy, which provides gas to homes in Niles and surrounding Michigan towns.
Lubbers said the gas price crisis was brought on by the devastation by Hurricanes Katrina and Rita in Gulf Coast towns that produce gas for home and commercial heating.
But even before that, demand from consumers for gas was outstiping supply, causing prices to rise. The hurricanes caused a problem that already existed to very quickly escalate into an energy crisis, he said.
Other experts in the energy field are echoing Lubbers' warnings.
He said prices for electricity and natural gas could increase by double-digit percentages over 2004 rates if rate increases are granted.
Lubbers said SEMCO has submitted a request to the Michigan Public Service Commission for a 35 percent increase in its rates. He said the gas company expects to hear something from the Public Service Commission in the next couple of months.
Lubbers said SEMCO and other utility companies are not permitted to mark up gas prices higher than what they pay. SEMCO does make profits from the gas distribution, however, he said.
Lubbers said federal regulations that prohibit drilling for gas in many areas across the country, like coastal California and Florida, have added to the gas supply problem.
Lubbers is urging customers who find themselves unable to pay a high gas bill on time to quickly contact the company to work out payment arrangements or seek payment assistance.