MidAmerican Energy warns heat bills could double

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Utility MidAmerican Energy says the frigid weather is compounding the high cost of natural gas.

Source: The Des Moines Register Publication date: 2000-12-15 Arrival time: 2000-12-16

MidAmerican Energy warned natural-gas customers that their next heating bills could double. The average natural-gas consumer can expect to pay about $320 to $400 more for heat from November through March, said Kevin Waetke, a MidAmerican spokesman.

The utility had warned in October that consumers should expect heating bills to be 40 percent to 50 percent more.

Natural gas is about four to five times more expensive than last year, Waetke said.

Frigid temperatures are compounding Iowans' weather costs.

"Not only are customers using more natural gas, the gas they're using is expensive," Waetke said.

MidAmerican bought natural gas at cheaper rates throughout the year, but still must buy some at market price. Natural-gas costs are passed directly to consumers.

"On really cold days, we dip into storage with the goal of reducing the price to customers," he said.

Waetke said supplies of natural gas are expected to be adequate, noting that MidAmerican has access to three or four interstate gas pipelines.

"We're not really concerned about a shortage or rationing of natural gas," he said. "It's the high cost."

Doreen Williams of West Des Moines Human Services Center said low- income residents are seeking help.

"A lot more are coming in mainly because they know the bills will be higher," she said.

The center has processed about 315 applications for low-income energy assistance since Oct. 1.

MidAmerican has about 450,000 residential natural-gas customers in Iowa.

http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=16611158&ID=cnniw&scategory=Energy%3ANatural+Gas

-- Martin Thompson (mthom1927@aol.com), December 17, 2000


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