Home work: Stategies to help you cut down on energy bills

The average U.S. family spends close to $1,300 a year on utility bills, according to the U.S. Department of Energy.

Those costs are likely to go up this winter as a result of destruction and disruption of services along the Gulf Coast. According to the American Council for an Energy-Efficient Economy, an independent, nonprofit organization that promotes energy efficiency and conservation, recent impacts from hurricanes Katrina and Rita include these: gasoline prices hitting above $3 a gallon in some states; heating oil prices that have risen to about $2.50 per gallon; one-fourth of the nation's oil production and 10 percent of its refinery capacity off-line for several weeks; natural gas wholesale prices hitting record highs — more than five times 1990 levels; higher coal prices due to increased demand from power generators and problems on shipping lines; and electricity prices, driven by high gas and rising coal prices, that are also likely to increase.

In short, says ACEEE, "all of our energy markets are under greater pressure than they have seen in 25 years."

Local consumers will also be feeling the impact. Questar Gas was granted a 14.4 percent increase in rates that went into effect June 1. But because most households were not using as much gas during the summer, consumers saw only minimal changes on their bills. When winter bills start coming, the jump will be more noticeable.

Questar also planned on requesting a 13.4 percent increase in rates that were to go into effect on Oct. 1, but in view of the devastation caused by both Katrina and Rita, decided to postpone that action until natural gas prices stabilize in the Gulf and they know what the impacts will be, said Darren T. Shepherd, a spokesman for Questar. The request will probably come sometime late in October, which will add more sticker shock.

Questar Gas typically asks the Public Service Commission of Utah to approve rate changes twice yearly, in May and September, to adjust rates to reflect changing supply costs.

The company purchases about half of the gas it distributes at market rates. The other half comes from company-owned gas wells, said Shepherd, which is a benefit to Utah consumers. "Our rates are still among the lowest in the country."

About 71 percent of the customer's bill reflects the cost of the gas itself, he explains. The remainder comes from non-gas costs such as system maintenance and other expenses related to delivering gas to customers. "These non-gas costs have remained stable for several years," noted Shepherd.