ENERGY: HEATING BILLS LIKELY TO BE HIGH THIS YEAR

The cost of heating a home or business this winter is likely to make consumers hot under the collar and cool their bank balances considerably.

Specifically, customers in Cape Girardeau, Scott and Stoddard counties could be seeing bills $15 to $50 a month higher than a year ago, translating into 20 to 40 percent increases. According to AmerenUE, home heating bills averaged $73 a month during the winter of 1999. However, last winter was mild -- the second warmest in Missouri on record. Predictions this year are for a more normal -- colder -- season.

Most Americans, though, are already aware of rising energy prices. They are reminded of it each time they pull up to a gas pump.

They'll be reminded again soon, when utility companies start filing for their annual winter "special rate adjustments" this month.

The Purchased Gas Adjustment (PGA) reflects the wholesale cost of gas from utility companies' suppliers.

The PGA, said AmerenUE officials, accounts for more than half of an average customer's total gas bill, excluding taxes.

"The special filing is necessary due to an unprecedented increase in wholesale natural gas prices," said AmerenUE spokesperson Susan Gallagher. "These wholesale prices are unregulated and fluctuate with supply and demand."

The request is filed with the Missouri Public Service Commission.

Normally, the rate of PGA increase to gas customers in the central and eastern parts of Missouri average about $3.50 to $4 a month. But this year the increase could go much higher.

Utility officials emphasize that the PGA increase is solely due to the higher commodity cost of natural gas, They attribute higher wholesale prices to a number of reasons higher crude oil prices, decreased supplies, and an increase in demand for natural gas from industrial users, electric power generators and the general growth of the U.S. economy.

All of this doesn't include a rate increase being sought by AmerenUE, which provides natural gas home heating for 106,000 commercial and residential customers, including 19,400 in Cape Girardeau.

The AmerenUE request has been negotiated to about 4.9 percent, down from the original 14.2 percent requested from the Missouri Public Commission earlier this year.

A settlement of the rate increase, which will be presented for approval to the MPSC, would limit AmerenUE's overall increase to $4.2 million, down from the $12.2 million originally requested. That could add another $2 to $3 to an average monthly bill, said Gallagher.

Formal hearings by the PSC are scheduled Oct. 30 through Nov. 3 before the PSC in Jefferson City.

Along with a projection that the price of natural gas will rise to its highest level since the early 1980s, industry experts are also predicting higher costs for home heating oil, propane and even firewood.

"The price of crude oil effects our prices, too," said Steve Ahrens of the Missouri Propane Gas Association. "As many as 20 percent of Americans use propane in some form -- heating, barbecue grills, and other outdoor activities. It looks like we'll be seeing higher crude prices this winter."

Propane is the fourth largest energy source, behind electricity, natural gas and fuel oil.

The higher energy prices also apply to wood, an alternative fuel for thousands of Americans.

Checks with wood cutters throughout the area indicate that wood prices could range from $5 to $10 a cord more than a year ago.

Although crude prices fell some late last week, prices are still bubbling above the $30 a barrel mark.