Predicting how high gas heating bills will be this winter is as difficult as crafting a precise weather forecast, experts say, because costs are partly linked to the severity of the cold.
But the price of gas itself is expected to be comparable to last year, which was relatively expensive. “We have been hearing from national experts at the American Gas Association that prices are high and they will remain through 2005,” says Elizabeth Castro, spokeswoman for People’s Energy Corp., Chicago.
Homeowners worried about paying their heating bills may find a degree of comfort in programs offered by utility companies, the government and charitable groups.
Both Naperville-based Nicor Inc. and People’s Energy offer “budget” plans. When customers enroll, the gas company estimates the amount of their annual bill, based on their usage patterns and gas prices, and then averages charges over the course of the year.
When homeowners sign up for a budget plan, they are billed less than they otherwise would be during cold months, but amounts are added to the gas bill during warmer seasons.
These budget plans are distinct from “fixed rate” or “fixed bill” plans, explains Pat Clark, spokeswoman for the Citizens Utility Board (CUB), a utility watchdog group.
Under fixed plans, customers receive one monthly charge whether the wholesale gas price goes up or down, Clark says.
For homeowners on a tight fixed income, a budget plan can be beneficial, Clark says. “These budget plans don’t save you money, but they do spread it [high bills] out,” she says.
On the other hand, CUB has taken on utilities over their fixed plans. In a complaint to the Illinois Commerce Commission in October 2003, CUB alleged that a plan offered by a People’s Energy affiliate misled consumers into signing up for a two-year plan that promised a fixed rate of 62 cents per therm, a measurement for natural gas, but failed to disclose key provisions that allowed the firm to raise the price.
The ICC agreed and recently fined the affiliate, People’s Energy Services. CUB is also involved in a class-action lawsuit concerning a fixed-bill plan offered by Nicor Solutions, an affiliate of Nicor Gas.
The budget plans are offered by the gas companies themselves, not from affiliated companies. To find out more or enroll in a budget plan, Nicor customers can call 888-NICOR4U (888-642-6748). Peoples Gas customers can call 866-556-6001, and North Shore Gas customers can call its parent company Peoples Energy, 866-556-6004.
Low-income Illinois residents who can’t afford even averaged gas heating charges can apply for a grant under the Low Income Home Energy Assistance Program, or “LIHEAP.” Those who qualify must have a monthly income less than 150 percent of the federal poverty level in the 30 days prior to making the application. For a two-person household, for instance, monthly income can’t exceed $1,561, and for a four-person household the limit is $2,355, says Mike Claffey, spokesman for the Illinois Department of Public Aid.
If they’re approved, money is deposited into their account at their gas utility, usually within about 45 days, Claffey explains. The average grant last year was $497.
Illinois residents can call 800-252-8643, which directs them to their local outreach center to submit a LIHEAP application.
From Sept. 1 until the end of October, only people over age 60, those who are disabled and those who have been disconnected from their gas utility may apply for a LIHEAP grant before enrollment to the public begins.
Another grant program with slightly higher income limits — households with incomes between 150 percent and 200 percent of the federal poverty level — is administered by the Salvation Army for Nicor and Peoples Energy.
Customers of Nicor can apply at any Salvation Army office for a $150 “Sharing” grant, funded by Nicor customers and workers. Similarly, up to $200 in a “Share the Warmth” grant is available to Peoples Energy customers through Salvation Army offices.
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