Rising natural gas prices send a chill

By Lewis Griswold The Fresno Bee

(Published November 3, 2000) Heating bills are going up as temperatures threaten to dip into the 30s Central San Joaquin Valley by next week.

Prices for natural gas, the primary source of winter heat in Valley homes, may increase by up to 50 percent, and those elevated prices are expected to linger for a year or more, Pacific Gas & Electric and The Gas Company officials warned.

For a home that had a $50-a-month heating bill last winter, it will be more like $75 a month this winter, according to PG&E, which covers Fresno and areas north.

The Gas Company, which serves the South Valley, reports similar increases: A home that paid $50 a month last winter can expect to pay around $70 a month this winter.

"It boils down to supply and demand," said Denise King, spokeswoman for the Gas Company.

The strong economy has sparked industry to use more natural gas, electricity generators are switching to natural gas instead of coal and more people are using natural gas to heat homes. That means demand has increased.

But supplies remain low. In the 1990s, low prices cause natural gas producers to reduce exploration of the fuel, say natural gas experts. When demand rises and supply remains low, prices increase.

Both PG&E and The Gas Company stressed that they have sufficient supplies to last through the winter.

http://www.fresnobee.com/localnews/index

-- Martin Thompson (mthom1927@aol.com), November 04, 2000