Ameren Illinois Utilities Report Lower Natural Gas Prices, Adequate Supplies as 2008-09 Heating Season Begins
October 21 2008 - 10:02AM
PR Newswire (US)
Utilities Offer Advice on Reducing Energy Bills PEORIA, Ill., Oct.
21 /PRNewswire-FirstCall/ -- Ameren Illinois Utilities natural gas
customers will see a significant drop in the cost of natural gas as
the 2008-09 heating season begins, while the utilities are
continuing to encourage customers to take the steps that will allow
them to spend less by using less energy. The drop in prices is the
result of the softening worldwide demand for energy that has led to
a reduction in the market prices of both crude oil and natural gas.
The cost of natural gas paid by residential customers during
November will be much lower than the price paid in October. Natural
gas prices for November 2008 are as follows: AmerenCILCO -- $0.95
per therm as compared to $1.29 in October 2008, AmerenCIPS -- $0.95
per therm as compared to $1.21 in October 2008, and AmerenIP --
$0.93 per therm as compared to $1.44 in October 2008, reflecting
decreases of 27 percent, 22 percent and 35 percent respectively.
"The price of natural gas fluctuates from one month to the next
based on supply and demand. Global economic conditions have
weakened demand, resulting in lower costs. We are cautiously
optimistic that natural gas market prices will remain lower than
originally predicted throughout this heating season. The Ameren
Illinois Utilities currently have the majority their natural gas
supplies hedged or 'price protected' for the upcoming winter to
insulate customers from market uncertainty," said Ameren Vice
President of Gas Supply and System Control Scott A. Glaeser. "While
these lower than predicted costs are good news, we recognize and
are concerned about the impact 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. Glaeser stressed that the
Ameren Illinois Utilities have secured adequate natural gas
supplies to meet customer needs during the 2008-09 heating season.
Customers are encouraged to adopt proven energy conservation
practices that will help reduce bills without sacrificing personal
comfort. With colder weather approaching, customers are urged to
apply caulk and weather stripping to block drafts. Furnaces and
flues should be inspected and cleaned annually by a heating system
professional to make certain systems are safe and operating
efficiently. 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. A list of conservation
suggestions is available on the Ameren Web site
(http://www.ameren.com/) in the "My Home" section under "Energy
Savings Tips." There also are conservation tips at the new
http://www.actonenergy.net/ Web site. (Note: See addendum to this
release for conservation tips.) Customers may enroll in the Budget
Billing plan as a way to better manage their energy bills. 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 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.
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, or Victoria
Busch, +1-618-346-1286, all of Ameren Illinois Utilities Web site:
http://www.ameren.com/ http://www.actonenergy.net/
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