Put some pennies in your piggy bank if you heat with natural gas.
Atmos Energy predicts that natural gas utility bills for an average Mississippi customer will rise as much as 73 percent over last year.
"We call it the perfect storm," said Robert Lesley, a spokesman for Atmos Energy's Mississippi Division, as he explained the causes for the increase.
First, hurricanes Katrina and Rita rolled into the Gulf of Mexico, wrecking natural gas production platforms and disrupting about 15 percent of the country's natural gas production. Lesley noted that the storms added to the problem of already tight supplies because of growing demands from power plants and other users. Add to those two conditions predictions that this winter's temperatures might dip relative to the last two years.
"Mother Nature's kind of dealing us a blow," Lesley said.
If we have a normal winter, the average Atmos customer in the state can expect to pay $860 during the winter months from now until March 2006. That estimate compares to an average cost of $498 last winter season.
Of course, the figures estimated by Atmos provide an average, Lesley said. Most customers will pay more or less, depending on how much natural gas they use, how low temperatures register and gas commodity market conditions.
Atmos officials weigh the market conditions based on natural gas market indicators for wholesale prices, and the amount of natural gas they've stored.
Atmos Energy buys natural gas during the summer months and stores it underground for winter. This helps stabilize the price and ensure a supply, according to Kevin Akers, president of Atmos Energy's Mississippi Division.
During winter months, more than 80 percent of a customer's total bill pays for just the gas.
"Customers pay only what Atmos Energy has already paid for natural gas and not a penny more," Akers said. "We buy the gas on behalf of customers. We simply pass the cost of the gas on to our customers with no markup.
The "perfect storm" has drawn national attention. Last week, President George W. Bush said he would "do whatever it takes" to counter energy supply shortages this winter.
