Community deals with energy concerns

By Stephanie Kohl

With winter approaching and energy costs already at record highs, DeKalb’s residents can expect natural gas bills to continue rising.

Don Ingle, director of corporate communications for Nicor Gas, said prices hit record highs this summer due to high demand for natural gas to generate electricity for air-conditioning during an unusually hot summer.

While natural gas prices typically increase during the winter, Ingle said damage from hurricanes Katrina and Rita also is responsible for the continuing upswing in natural gas costs.

“A lot of the natural gas produced in this country comes from the Gulf of Mexico,” Ingle said. “With the damage to the drilling rigs in the Gulf and disruptions in the pipelines that transport the gas, natural gas has become less readily available and more difficult to transport.”

Another issue with natural gas is the lack of alternative sources, Ingle said.

“With gasoline, we can always get petroleum from other sources, such as imports,” said Ingle. “But 99 percent of the natural gas used in the U.S. comes from the U.S. and Canada, which means that we don’t have the same external sources as with petroleum.”

Nicor operates special storage facilities to offset some of the increased costs, he said.

“We own seven underground storage fields where we can buy gas at cheaper prices during the summer and store it for winter to help keep costs down,” Ingle said.

On Saturday, Nicor began charging $1.17 per therm, the basic unit of measurement for natural gas. That rate, up from 75 cents per therm two months ago, is “the highest price we’ve ever charged,” Ingle said. “That is the actual cost we pay for the gas. There is no mark-up that is passed on to our customers.”

As natural gas prices continue to climb, many consumers will be forced to find ways to deal with the increasing costs.

At Lincolnshire West Apartments, 1307 W. Lincoln Highway, the gas bills are paid by the owners. The price climb will force them to find an alternative means of offsetting the higher costs, property manager Michael Silk said.

“I imagine some of the costs will possibly have to be passed on to new renters in the form of higher rents on new leases,” Silk said.

DeKalb resident Ingrid Anderson said she intends to be more frugal in her use of natural gas this winter.

“I plan to just be more careful with usage, really,” Anderson said. “I’ll try to cut back where I can, but otherwise I’ll just have to deal with it as best I can, maybe budget a little more for it.”

DeKalb resident Dan Seymour said he would consider investing in a new, more efficient furnace for his home.

“I probably will heat about the same way I always have, although I am considering possibly getting a new furnace,” Seymour said.

Seymour said he would like to see the government establish incentive programs to encourage conservation among consumers.

“I’d like to see something similar to the program that was in place back when Jimmy Carter was president, where people were offered some incentives to conserve,” Seymour said.

Ingle said Nicor customers would be encouraged to consider utilizing the company’s Budget Plan, which enables customers to spread their payments over a 12-month period and can be adjusted every four months to calibrate for cost fluctuations and expected usage.

Another option available to some consumers is the Low Income Home Energy Assistance Program (LIHEAP), an initiative funded by federal and state governments that aids households with incomes of up to 150 percent of the federal poverty level.

Information on LIHEAP can be obtained by visiting the program’s Web site, www.liheapillinois.com, or calling 800-252-8643.