Cold temperatures pushing a demand for heat, last fall's hurricanes and last year's hot summer are bringing surprisingly high bills for many Atmos Energy natural gas customers.
Gregory Cooper of Itta Bena was shocked at the increase in his bill this month.
"What are we going to do if the coming months are like this?" he said, referring to the chilly mist that fell over Greenwood Tuesday afternoon.
"Companies are taking advantage of people on fixed incomes, especially in this area," he said.
Not so, says Atmos Energy, America's largest all-natural gas distributor.
January's high heating bills reflect a bigger national trend, according to Robert Lesley, director of public relations for Atmos Energy Mississippi.
"People are concerned, but we're concerned about it too," he said.
On average, Americans using natural gas for heat will pay $257, or 35 percent more, than last winter according to recent statistics from the U.S. Department of Energy.
Heating oil bills are expected to rise by $275, or 23 percent, and propane by $184, or 17 percent.
January's problems stem back to last summer, which was hotter than predicted. An increased demand for energy strained the power plants that use natural gas for fuel.
These power plants were built more than 10 years ago, when natural gas was an economically viable choice.
Now, "it's like using bottled water to wash your car," Lesley said.
As supplies were strained, Hurricanes Rita and Katrina slammed into the Gulf of Mexico in August and September. The powerful storms further weakened supply by wrecking the infrastructure carrying fuel supplies from the Gulf of Mexico.
All this combined has the U.S. gas industry calling it "the perfect storm."
"The gas market is pure supply and demand," he said. "In America right now we are using as much as we can produce."
In November, Greenwood real estate agents attended a continuing education class hosted by Atmos Energy on energy conservation.
Nancy Candy, who works with James Quinn Agency, said Atmos representatives warned gas prices could double or triple by winter's end. "They alerted us that it would be a really bad winter."
Since then, Candy has noticed a steady increase in gas prices, particularly this month. Her gas bill has doubled, and one of her renters told her his bill had gone up by $100.
The increase affects older, retired people more. "If you're on a fixed income or budget this can really put you in a bind," Candy said.
Atmos Energy takes all the steps it can to prevent outrageous prices including buying gas when it's cheaper and storing it for the winter.
By law, Atmos Energy cannot sell natural gas for a price higher than its purchase price. The company makes its profit from the delivery of natural gas, not from selling it, Lesley said.
This is reflected in the heating bill. The bill is based on 70 percent of the cost of gas and 30 percent on how much the customer uses, Lesley said.
Cle Williams of Greenwood uses natural gas to heat his one-bedroom home.
His bill for December has more than doubled from the usual $80 to $205. On Tuesday, he stopped by Atmos Energy to find out what the damage would be in February.
"It'll be alright." Williams said. "That's just the way it goes."
Tips for Energy Conservation from Atmos Energy:
- Set thermostats between 65 and 70 degrees during the winter and at 58 degrees when away from the house for more than a few hours. While sleeping, add an extra blanket for warmth. Bear in mind that warmer temperatures are recommended for homes with ill or elderly persons or infants.
- Cut annual heating bills by as much as 10 percent per year by turning your thermostat back 10 percent to 15 percent for eight hours per day.
- Change or clean furnace filters once a month during the heating season. Furnaces consume less energy if they "breathe" more easily.
- Seal leaks around doors, windows and other openings such as pipes or ducts, with caulk or weatherstripping. The most common places where air escapes in homes are floors, walls, ceilings, ducts, fireplaces, plumbing penetrations, doors, windows, fans and vents and electric outlets
- Close vents and doors in unused rooms and close dampers on unused fireplaces.
- Set water heater temperatures at 120 degrees. A family of four, each showering for five minutes a day, uses 700 gallons of water each week.Turning down the unit's thermostat to 120 degrees can help you save money, since water-heating is a typical family's third-largest energy expense, accounting for about 14 percent of utility bills.
- If radiators are located near cold walls, place a sheet of aluminum foil between the radiator and wall to reflect heat back into the room.
