Several Lovell area residents met Friday to talk with employees of power companies and other agencies that are concerned with the winter energy bills of Wyoming residents.


Representatives of the Public Service Commission, Montana-Dakota Utilities, Rocky Mountain Power, the Dept. of Family Services and the office of consumer advocate talked about the forecast for natural gas prices and the steps residents can take to soften the blow of a potentially expensive winter of heating costs at a meeting at the Lovell Community Center Friday.


The good news, MDU manager of gas supply Bob Morman explained, is that forecast prices of natural gas made earlier this year that called for as much as a 70 percent increase were higher than current forecasted prices, which means customers will probably see a smaller increase in the price of natural gas. He said prices for customers in the Big Horn Basin should be much less than the statewide average, too. Forecasts as of Thursday called for a 15 percent increase across the Big Horn Basin, but that number could be slightly off, as well.


“The direct mailing (sent out in newspapers across the state earlier this month) for available programs and expected costs is a little outdated now,” Morman said, adding that the data was gathered at about the year’s peak of natural gas costs, and has gone down since.


He said an updated mailer would be sent out with newspapers statewide with a new forecast within the next week. He explained the forecasted costs are based on fuel use during an average winter and said a hot or cold season could sway overall costs accordingly.


Morman explained the company buys gas from a “diverse portfolio” of about 20 different suppliers and though MDU can’t control the market, the company is prudent with natural gas purchases.


“We negotiate. We’ve definitely walked away from some sales,” he said.


Morman said the prices of MDU natural gas is directly linked to regional, national and global markets. He said infrastructure damaged by hurricanes and a cold winter in 2007 also brought up demand for natural gas, while the supply went down.


Wyoming Public Service Commission secretary and chief counsel Christopher Petrie explained the PSC’s role in natural gas purchases.


“We can say you’re not making a profit on that gas or be prudent in getting that gas, but we also have a responsibility to that utility company,” Petrie said, noting if the PSC refused to accept prices from utility companies because they are simply “too high for customers to afford,” the utility companies would quickly be out of business.


Morman assured those in attendance that the national supply of natural gas from which MDU purchases is adequate to provide uninterrupted service to residential customers.


“If anything puts us in a situation where there was a shortfall in the supply, the first thing that happens is the industrial places get shut down so the non-interruptible customers get the energy they need,” he said.


Residential customers are the first priority, he said, followed by small commercial operations and larger businesses and industrial places.


“We force anybody over a certain size into an interruptible sale,” he said.


He said MDU plans to have slightly more fuel than the expected demand and said customers won’t likely see a “brown-out” this winter, except in the rare case of a frozen pipe or a pipe damaged by digging.


Rod Taylor of Rocky Mountain Power said electricity costs will be 9 percent more than last winter, which would bring a $58 electric bill up to $63, he said.


Increased industrial operations in the state have increased demand for power, he said, and rising copper and steel prices have driven the increase as well.


He said RMP is implementing programs to promote the use of more efficient cost-efficient lighting and is in the planning stages of a program to buy back older appliances.

MDU regulatory analysis manager Rita Mulkren talked about the several programs being offered by MDU to offset costs for energy efficient upgrades and improvements such as furnaces, appliances, windows and programmable thermostats. Part of the reason MDU offers the rebates is to help customers get more of a return out of their energy-saving investments, Mulkren said.


Another voluntary and free MDU program is the balanced-billing program, which allows customers to get a bill that is largely consistent every month, calculated on a 12-month rolling average. Though the amount owed each month may fluctuate by a few dollars, customers are not asked to pay a “true up” bill after six months of service, she said.


“The number bounces around a little, but it takes the sting out of that January bill,” Mulkren said.


About 50,000 out of MDU’s 190,000 customers are currently on the balanced-billing program; in Wyoming, 6,000 of 16,000 customers take part.


Kimberly Sap of the Dept. of Family Services Powell office talked about the Low Income Energy Assistance Program (LIEAP), a federally and state funded program designed to provide financial assistance for heating bills from October to May.


Those who qualify by making a minimum amount per month (see chart) never see the money, but instead see a lower price in energy costs from utility providers.


People who qualify for LIEAP also qualify for a free weatherization service, where certified technicians visit homes and check carbon dioxide emissions, wiring and ventilation. They also improve efficiency by insulating pipes, attics and the underside of mobile homes and sealing drafts. In rare cases, they will also replace windows or furnaces.


For more information about the LIEAP, contact the Powell DFS office or visit the DFS Web site.


Anyone who would like to be considered for the program must apply in the current year, and applicants can expect to hear back from the DFS about 45 days after applying.


•Energy Share of Wyoming can provide financial help to persons who don’t qualify for LIEAP. Applications can be made from Dec. 1 through May 30. Contact the Salvation Army at 1-877-461-5719 for details.


•A representative of Big Horn Rural Electric Administration said the company offers free use of an infrared camera to their customers and also has drop boxes for broken or burned out high efficiency light bulbs, which contain mercury and cannot be thrown into landfills.


•Consumer advocate Ivan Williams advised attendees to get an energy audit from a licensed, reputable contractor to find out where to get the most bang for the buck in energy-saving improvements. He said the Wyoming Energy Council is a resource for residents to find reputable contractors to do an audit. WEC can be reached at 1-800-742-0313.


Contacts:

LIEAP – 1-800-246-4221
Low Income Energy Assistance Program

WES – 307-265-0603
Loans for cost-effective energy efficient improvements

WEC – 1-800-742-0313
Home-energy audits

Energy share Wyoming -- 1-877-461-5719
Funds for energy related emergencies

State Energy Program – 1-800-262-3425
www.wyomingbusinesscouncil.com

PSC – 1-888-570-9905
Psc.state.wy.us

Wyoming Office of Consumer Advocate  1-888-570-9905


LIEAP requirements

Size of family    Max. monthly income
1                            $1,863
2                            $2,508
3                            $3,153
4                            $3,798
5                            $4,443
6                            $5,088
7                            $5,733
8                            $6,378