That word comes from the Kentucky Public Service Commission (PSC), who said this week consumers "should be prepared for the highest natural gas prices ever this winter."
PSC Chairman Mark David Goss predicts gas is likely to cost more than it did during the winter of 2000-01, when prices set a record. A 70 percent increase is projectedl.
He said natural gas prices have been rising in recent years, but the increase has steepened recently.
"Prices have gone up this summer, instead of declining as they typically have done during the warmer months; they are at levels twice as high as a year ago," Goss continued.
Goss points to several factors pushing the price of natural gas upwards:
"Supply disruptions caused by Hurricane Katrina simply made a bad situation even worse," Goss said. "Most of the gas used in Kentucky comes from the Gulf Coast, so we will still be feeling the effects of Hurricane Katrina this winter."
The ultimate impact on consumers will depend on weather during the coming heating season, he said.
"A warm winter that keeps demand in check would help keep prices in check," he continued, "but cold weather that increases demand could drive prices even higher."
He said consumers have to do whatever they can to reduce the amount of natural gas they use.
Federal law does not allow regulation at the wholesale level, so these prices fluctuate with supply and demand, Goss explained.
"Under Kentucky law, gas companies are entitled to recover the wholesale cost of the gas they deliver to customers, and the companies' gas cost adjustments are reviewed by the PSC to make sure they accurately reflect the wholesale cost of gas," he said.
He said gas companies use storage and other tools to reduce volatility in the natural gas prices passed on to consumers. Other tools include the use of long-term purchase agreements that provide gas at predictable prices.
Leitchfield Utilities Supervisor Eddie Miller said Wednesday the city's locked-in price for natural gas will expire before this winter's heating season, "so we'll be looking hard for the lowest possible price before we lock in for the coming year."
Goss had the following suggestions for consumers who want to start now to reduce their natural gas use:
Add insulation in attics, crawl spaces and walls, plus cover windows, especially those with single-pane glass, with storm windows or plastic sheeting.
Clean or replace furnace filters monthly to improve airflow and efficiency.
Goss said help with weatherization for low-income families is available through several social services agencies in the Cabinet for Families and Children.
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