NATURAL-GAS PRICES A HARDSHIP ON MOST

Natural gas has long been favored by homeowners and industries as an economical power source, but natural-gas prices have shot through the roof this winter.

And unless prices come down, look for consumers to turn to less costly sources of energy.

In most cases, the alternative fuel would be electricity, but the cost of running a home or factory on electricity can't be much cheaper than the cost of operating on natural gas with prices as high as they are now.

It's hard to understand how prices for natural gas, which is plentiful beneath the earth across the United States and Canada, have suddenly skyrocketed just in time for the beginning of the winter season.

The industry tells us companies have cut back on drilling, and as a result inventories are low.

The industry also blames low inventories on electric utilities increasing their use of natural gas to generate electricity.

Whatever the reasons, acceptable excuses are hard to find for natural-gas bills of local homeowners and businesses in October and December doubling and tripling those of a year ago.

Sure, both months were unusually cold, as utilities companies were quick to point out, but the prices utilities paid for the gas -- reflected on customers' bills as something called PGAs, or purchase gas adjustments -- were astronomical.

And utilities companies are permitted to automatically pass those wholesale price increases on to their customers to assure that the companies receive the margins of profit allowed them by state energy regulatory agencies, which in Missouri is the Missouri Public Service Commission.

Homeowners, particularly those with older homes with little or no insulation, can help ease the burden of gas prices by adding insulation and taking other energy-savings measures.

Homeowners with newer, well-insulated homes can only turn back their thermostats in hopes of easing the burden.

Many can remember the 1970s when gas supplies were declared so limited that utilities companies refused to accept new natural-gas customers.

Instead, new-home owners and new industries had no choice but to use what then was more-expensive electricity for all their energy needs.

And if gas prices stay as high as they are, they can be glad they did.

Suddenly, the winter forecast is very important.