Natural gas prices to go up 70 percent

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BOSTON (AP) January 10, 2001 Natural gas prices to go up 70 percent -- Federal regulators say natural gas prices are up sharply and estimated that those who use gas to heat their homes will pay about 70 percent more than they did last year. The Energy Information Administration, part of the Department of Energy, says its previous estimate was that natural gas expenses would rise 50 to 55 percent.

"The natural gas market has served up sharply higher prices since last month, generating significant upward adjustments in our average winter gas price projections. Very large increases in heating-related demand appear to have materialized in November and December, resulting in a sharp reduction of gas available in storage ..." the agency said in its monthly Short-Term Energy Outlook report.

The agency also revised upward its estimate for the costs of those who heat their homes with oil, saying their bills would rise about 40 percent.

Concern over proposed natural gas price increases has led the state Department of Telecommunications and Energy to schedule eight hearings around the state between Tuesday and Jan. 23 to take comments from the public on increases sought by KeySpan Energy, NStar’s ComGas, Blackstone Gas Co. and other companies. The local hearing will be held Jan. 22 at 7 p.m. at the New Bedford main library.

The utilities had wanted increases in place by Jan. 1. Now, they’ll have to wait until at least Feb. 1.

The decision comes in the face of pressure from Attorney General Thomas Reilly and consumer groups, who want to air concerns about how increases will affect low-income and elderly customers.

Tom Kiley, president of the New England Gas Association, told the Boston Herald: "These are extraordinary events that have caused these prices to rise to the level that they have risen. We are hopeful that the moderating weather trend nationwide will continue throughout the U.S. and prove this EIA forecast wrong."

http://www.zwire.com/site/news.cfm?newsid=1259777&BRD=1710&PAG=461&dept_id=99784&rfi=6

-- Martin Thompson (mthom1927@aol.com), January 10, 2001


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