Finally, good energy news

0 Comments | La Crosse Tribune, Feb 02, 2001 | by Cahalan, Steve

Xcel Energy natural gas customers in Wisconsin can expect lower prices in February, because a warmer-thannormal January has reduced consumption and increased reserves.

Despite that good news, Xcel still predicts this winter's overall heating bills will be 60 to 75 percent higher than last winter because of higher gas prices and a colder winter.

The average residential natural gas rate for Xcel Energy customers in Wisconsin was $1.28 per therm in January. That is expected to decrease in February by about 23 percent, to 99 cents per therm, company spokesman Brian Elwood said Thursday.

Xcel's typical residential customer uses 140 to 150 therms of gas in a normal January, Elwood said.

With January's warmer weather, Elwood said, "Demand has decreased, and the market is adjusting. With warmer temperatures, supplies go up a little."

Still, this winter is colder than last winter.

"Last winter was 12 to 14 percent warmer than normal, depending on where you were. This winter, we're seeing a much more normal winter," he said, adding that December was especially cold.

Across the nation, natural gas prices have doubled since last year because of a decrease in production, short supplies and high energy demands by industry and electric utilities. Gas supply managers expect it could be 18 months or longer before gas from increased drilling by producers appears in the market and drives down natural gas prices.