Ameren Illinois Utilities Report Customers to Benefit From Continued Decline in Natural Gas Costs
February 23 2009 - 11:53AM
PR Newswire (US)
Natural Gas Prices Down 40% to 55% Since Fall Peak PEORIA, Ill.,
Feb. 23 /PRNewswire/ -- With one month remaining in the 2008/2009
heating season, Ameren Illinois Utilities natural gas customers
will benefit from another significant drop in the cost of natural
gas. The continued decline in the cost of natural gas is a
reflection of weak global demand for energy that has led to
declines in the market prices of both crude oil and natural gas.
The cost of natural gas delivered to residential customers during
March will be much lower than the price paid in February. Natural
gas prices for March are as follows: AmerenCILCO - $0.64 per therm
as compared to $0.77 in February, AmerenCIPS - $0.68 per therm as
compared to $0.84 in February, and AmerenIP - $0.64 per therm as
compared to $0.77 in February, reflecting decreases of 17 percent,
19 percent and 17 percent respectively. Since their peak last fall,
per therm natural gas costs for the Ameren Illinois Utilities have
dropped by 40 percent to 55 percent. "The price of natural gas
fluctuates from one month to the next based on supply and demand.
Global economic conditions continue to weaken demand, especially in
the industrial sector, resulting in lower gas prices," said Ameren
Vice President of Gas Supply and System Control Scott A. Glaeser.
"We also recognize that the extremely cold temperatures that
occurred in December and January meant that our customers used more
natural gas this year than a year ago, resulting in higher total
bills," Glaeser said. "We have and will continue to provide our
customers with the information they need to better manage their
energy usage." Residential customers are encouraged to enroll in
the Budget Billing plan. This plan allows residential customers to
pay the same amount each month. 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. By enrolling now, customers can begin leveling out
their monthly payments. Customers may enroll in Budget Billing by
visiting Ameren's Web site (http://www.ameren.com/) or by calling
the Ameren Illinois Utilities (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 energy efficiency and conservation practices,
which will allow them to pay less by using less energy. Customers
may also consider setting thermostats a little lower. Each degree a
thermostat is lowered can reduce heating costs by 2 to 3 percent.
Ceiling and other circulating fans can be used to push warm air
from ceilings. Humidifiers will help keep homes comfortable at
somewhat lower temperatures. A detailed list of energy efficiency
and conservation suggestions is available on the new Act On
Energy(TM) Web site (http://www.actonenergy.com/) by selecting the
"Energy Savings Tips" menu item. The Ameren Illinois Utilities
purchase natural gas from gas producers located in various U.S.
natural gas production areas. The wholesale price is not regulated,
but 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 two-thirds of a
typical 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 have been providing safe,
reliable energy delivery service for more than a century. The
Ameren Illinois Utilities deliver energy to 1.2 million electric
and more than 840,000 natural gas customers in about 1,000
communities, while helping customers spend less by using less and
communities grow through economic development initiatives. Heating
Season Tips from the Ameren Illinois Utilities A detailed list of
energy efficiency and conservation suggestions is available on the
new Act On Energy(TM) Web site (http://www.actonenergy.com/) by
selecting the "Energy Savings Tips" menu item. 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/
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