Michigan residents should brace for at least a 21 percent increase heating cost and it’s attributed to the price of crude oil
The Michigan Public Service Commission on Monday released its assessment of the cost of winter heating for November through March. It said residential heating bills will average about $193 a month, up from $154 last winter:
Natural gas heats about 80 percent of Michigan homes. This winter’s higher anticipated cost is attributed to the price of crude oil.
Other fuel sources will also cost more this winter, state regulators said.
Propane, used in about 10 percent of Michigan homes, is expected to cost 3 percent more this winter. The cost of heating oil, which supplies warmth for about 3 percent of the state’s homes, will rise about 13 percent.
“It doesn’t matter what fuel you are using; it’s going up in price, unfortunately,” said Judy Palnau, a commission spokeswoman.
“We want people prepared that this is coming. Now is the time to make your home more energy efficient. And the number one thing we’re telling people who even think they might have trouble paying their heating bills this winter is to call their utility now and they can get you on a program to help out.”
Word of higher winter costs comes as natural gas shutoffs have been increasing because of unpaid bills in the state’s stumbling economy. Through June, natural gas shutoffs were up 7 percent, to 67,406, compared to the same period last year, regulators said.
John Austerberry, a spokesman for MichCon, a subsidiary of DTE Energy, which supplies natural gas to about 1.3 million customers, said the natural gas price hike is simply the result of market factors.
“We do, at this point, expect to see about a 20 percent increase in heating bills this year compared to last,” he said. “That’s due to the cost of gas because there has been no other change in any other costs associated with the service.”
He said the company doesn’t make any profit off the sale of gas at higher prices.
“We charge our customers what it costs us to pay for it,” he said.
Crude oil for November delivery fell as much as 97 cents, or 1 percent, …
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September 30, 2008 - 09:31 PM on September 30th, 2008
Next time ROBERT KENNEDY Jr or LEONARDO DeCAPRIO send letters from some eco-freak group urging you to send $500 or mail in their stupid little postcards opposing drilling in the ANWR tell them both to GO JUMP OFF A CLIFF and quit your blasted green lying SCREW ROBERT KENNEDY Jr AND LEONARDO DeCAPRIO
September 30, 2008 - 11:27 PM on September 30th, 2008
And this is just what Michigan residents need right now in the current economic and business climate, right? The annual cost of this should be calculated, then the bill sent to Nancy Bitchlosi, the worst Speaker of the House EVER.
Your Democrite Poster Bitch.
October 1, 2008 - 05:39 AM on October 1st, 2008
If I read the material correctly, Oklahoma held the pricing last year during the climb. They were going to pass the cost gradually. The power company worked with the state commission etc., and worked out a livable deal for the customer, and now in light of the price drop, OK is going to get their recoup quickly and be paid back but still manage to pass a savings on to the consumer. Imagine that, working with the consumer. You will never see that in MI!