Ameren Illinois Utilities Foresee Higher Winter Natural Gas Prices, Supplies Adequate for 2008-09 Heating Season
August 14 2008 - 9:55AM
PR Newswire (US)
Utilities Offer Advice on Reducing Energy Bills PEORIA, Ill., Aug.
14 /PRNewswire/ -- Higher worldwide demand for energy has driven up
the market prices of both petroleum and natural gas, which will
mean higher 2008-09 heating season costs for natural gas customers
in Illinois and around the nation than they experienced in 2007-08.
"The price of natural gas fluctuates from one month to the next,
but we believe the price paid by our customers will remain
significantly higher than last winter," said Ameren Vice President
of Gas Supply and System control Scott A. Glaeser. "At this time,
it appears the price of natural gas for Ameren Illinois Utilities
residential customers will be 15 cents to 25 cents higher per therm
this heating season than last year. This represents an increase of
about 20 to 30 percent over last year's heating season," Glaeser
said. "A bright spot in our outlook is the fact that natural gas
prices have somewhat stabilized in recent weeks. We are cautiously
optimistic that the most significant increases in the price of
natural gas for this year are behind us," Glaeser said. "We
recognize and are concerned about the impact higher natural gas
prices may have on our customers," Glaeser said. "We will continue
to do all we can to make certain our customers understand this
issue and have the information they need to better manage their
energy usage." The Ameren Illinois Utilities are energy delivery
companies. As such, they must purchase natural gas from producers
for delivery to their customers. The wholesale price paid to
producers is not regulated, but rises and falls based upon market
conditions caused by supply and demand. The Ameren Illinois
Utilities do not profit from the cost of natural gas paid by
customers. Natural gas prices for August 2008 are as follows:
AmerenCILCO - 129.69 cents per therm as compared to 81.76 in August
2007, AmerenCIPS - 119.93 cents per therm as compared to 85.25 in
August 2007, AmerenIP - 135.44 cents per therm as compared to 89.48
in August 2007, and AmerenCIPS Metro East - 134.57 cents per therm
as compared to 87.46 in August 2007. Glaeser cautioned that the
market price of natural gas can change quickly and dramatically due
to such unforeseen events such as destructive hurricanes in the
Gulf of Mexico. Hurricanes Katrina and Rita pushed natural prices
to record levels in 2005. Glaeser also stressed that the Ameren
Illinois Utilities have secured adequate natural gas supplies to
meet customer needs during the 2008-09 heating season. There are
steps customers now can take to better manage their energy bills.
For example, residential customers may enroll in the Budget Billing
plan. This plan allows residential customers to pay the same amount
each month. By enrolling now, customers can begin leveling out
their monthly payments. The plan allows customers to pay an average
monthly bill amount based on the last 12 months of usage. The
payment level is periodically reviewed and adjusted as necessary.
On the 12th month, the account is reviewed to calculate the
difference between the amount of energy used during the year and
the amount paid under Budget Billing. If the amount paid exceeds
the actual cost of providing the energy, the customer receives a
credit. If the amount billed is less than the actual cost of
providing the energy, the customer is billed for the difference.
Customers may enroll in Budget Billing by visiting Ameren's Web
site (http://www.ameren.com/) or by calling their Ameren Illinois
Utility company (AmerenCIPS: 1-888-789-2477, AmerenCILCO:
1-888-672-5252, and AmerenIP: 1-800-755-5000). Customers may enroll
in the program or drop out at any time. There is no cost to enroll
in Budget Billing. Customers also are encouraged to adopt proven
energy conservation practices that will help reduce bills without
sacrificing personal comfort. Though residential customers
primarily use natural gas for home heating, many customers use it
for water heating. To reduce bills, set the water heater
temperature at 120 degrees Fahrenheit or on "low." Using this
setting can reduce annual energy costs by 3 to 5 percent. When away
from home for an extended period of time, select the "vacation"
setting if the unit is so equipped. Hot water usage can be reduced
by using cold or warm water in the washing machine, a step that
saves money and can extend the life of clothing. Get more life out
of the water heater and reduce energy costs by periodically
draining the tank to eliminate the buildup of sediment. Though the
heating season is a few months away, this is a good time to take
steps that can reduce heating bills. A good place to begin is by
using caulk and weather stripping to block drafts. Furnaces and
flues should be inspected and cleaned annually by a heating system
professional. A list of conservation suggestions is available on
the Ameren Web site in the "My Home" section under "Energy Savings
Tips." There also are conservation tips at the new ActOnEnergy.net
Web site. The Ameren Illinois Utilities, which are energy delivery
companies, purchase natural gas from producers located in various
U.S. natural gas production areas for delivery to their customers.
The price the Ameren Illinois Utilities pay for natural gas is
known as the wholesale price and is not regulated. The wholesale
price rises and falls based upon market conditions caused by supply
and demand. The Ameren Illinois Utilities pass the cost of natural
gas on to customers, dollar for dollar without any profit or markup
in price, through the Gas Charge (also referred to as the PGA,
which means "purchased gas adjustment"). About three-fourths of a
residential customer's bill is the actual cost of natural gas. The
Gas Charge is recomputed each month and may go up or down depending
on the wholesale price of natural gas. The Gas Charge is a matter
of public record and is available on the Ameren Web site
(http://www.ameren.com/) under "Historical PGA Rates" for
AmerenCIPS and AmerenCILCO and "Historical Gas Charges" for
AmerenIP. The Ameren Illinois Utilities strive to keep natural gas
costs at stable and reasonable rates for their customers, while
dampening the effects of market volatility and price spikes from
the wholesale gas markets. The utilities utilize sophisticated
financial hedging strategies and negotiate both long- and
short-term natural gas supply contracts. The Ameren Illinois
Utilities utilize a number of interstate pipeline suppliers,
accessing multiple production areas to bring natural gas to
Illinois. The Ameren Illinois Utilities serve 1.2 million electric
and more than 840,000 natural gas customers in a 43,700-square-mile
area of Illinois. Heating Season Tips from the Ameren Illinois
Utilities Saving Money Today -- You can save 2 to 3 percent on your
heating costs for each degree you lower your thermostat during the
heating season. -- Install a programmable thermostat to
automatically adjust your home's temperature settings when you are
away or sleeping. -- Never place a thermostat on an exterior wall,
where it may be affected by outdoor temperatures. -- Consider
replacing a thermostat that is 10 years old or older with a newer
model for greater accuracy and efficiency. -- Regularly change or
wash (depending on type) furnace filters. This is especially
important if you have pets. -- Take advantage of solar heat by
opening curtains, blinds and shades on sunny days. Close curtains,
blinds and shades at night. -- Have your heating system checked and
serviced by a professional before the start of the heating system.
Improperly operating fossil fuel furnaces can pose serious health
and safety hazards, as well as use more energy. Fireplace and
wood-burning stove flues should be inspected and cleaned by a
professional, as well. -- Check for heating system duct air leaks.
Begin by sealing ducts that run through the attic, crawlspace,
unheated basement or garage by using duct sealant (mastic) or
metal-backed (foil) tape to seal the seams and connections of
ducts. After sealing the ducts in those spaces, wrap the ducts in
insulation to keep them from getting hot in the summer or cold in
the winter. Next, seal ducts that you can access in the heated or
cooled part of the house. Properly sealed ducts can improve your
heating system's efficiency by up to 20 percent. -- Replace
incandescent bulbs with ENERGY STAR qualified compact fluorescent
lights (CFLs). Unlike incandescent bulbs, CFLs emit little heat and
last seven or more years. -- Use low-cost ceiling fans or other
types of circulating fans. Fans help to evenly distribute air,
eliminating both hot and cold spots. -- Set the water heater
thermostat to the 120 degrees Fahrenheit (or "low") setting. Higher
temperatures not only are unnecessary, but pose a safety hazard for
children. Use the "vacation" or "standby" setting when away from
home for an extended period of time. -- Follow the manufacturer's
guidelines to drain a quart of water from the water heater every 3
month to remove sediments that cause the water heater to use more
energy. -- When not in use, keep fireplace and wood stove dampers
closed. Look in on others -- Check in on the elderly and those with
medical conditions to make certain they are safe and comfortable.
Saving Money Tomorrow -- There is no substitute for insulation. Add
insulation if attic floor joists are visible. -- Use of
weather-stripping and caulking helps prevents drafts, keeping homes
warmer while saving energy. -- Make certain exterior doors have a
tight fit. -- Look for the ENERGY STAR qualified label when buying
appliances, lights, heating and cooling equipment, doors, windows,
home electronic products, office equipment and more. Americans,
with the help of ENERGY STAR, saved enough energy in 2007 alone to
avoid greenhouse gas emissions equivalent to those from 27 million
cars -- all while saving $16 billion on their utility bills. For
information, call 1-888-STAR- YES or visit:
http://www.energystar.gov/. -- Significant savings can be realized
by installing a high-efficiency heating system. An ENERGY STAR
qualified high-efficiency heating system can save you up to 20
percent on energy costs. -- The Ameren Illinois Utilities recommend
customers enroll in the Budget Billing plan. This free service
allows customers to pay the same amount each month of the year.
Customers can enroll on the Ameren Web site
(http://www.ameren.com/) or by calling toll-free 888-789-2477. --
Plant trees around the house. Trees substantially reduce energy use
by shading roofs and walls from the summer sun and serving as a
barrier against winter winds. For a free copy of "Planting Trees"
for more details on proper tree selection, send an e-mail request
to . DATASOURCE: Ameren Illinois Utilities CONTACT: Leigh Morris,
+1-217-535-5228, or Neal Johnson, +1-309-677-5284, both of Ameren
Illinois Utilities Web site: http://www.ameren.com/
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