You could pay more to heat your home this winter

Nicor Gas customers around the suburbs are paying about 13 percent more for natural gas during October, compared to a year ago, according to data submitted by the company to the Illinois Commerce Commission. And the heating season has just begun.

Nicor said the cost per therm during October is 44 cents, compared to 39 cents a year ago. A month ago, the cost was 41 cents per therm, or 7 percent higher.

Still, that's not as bad as five years ago when natural gas prices soared to $1.17 per therm.

“The good news is that for the past two years gas costs have remained lower than they have been in the past, said Annette Martinez, a spokeswoman for the Naperville-based utility.

And we're not alone. The U.S. Energy Information Administration said Wednesday that nationwide, consumers should expect to pay an average of $27, or 4 percent, more this winter than last winter, a period typically defined as October through March. The increase in natural gas expenditures reflects a 6 percent increase in prices and a 2 percent decrease in usage.

Natural gas, used by 52 percent of the households nationwide, is a volatile commodity. That means the market price is based on supply and demand nationwide. Several factors influence supply and demand, such as natural gas production and weather, experts said.

The Nicor Gas bill shows that the price of natural gas itself is passed directly on to consumers without markup. The utility is required to provide the cost per therm to the ICC, which oversees the utility and can review those prices annually.

A separate charge for the delivery of the natural gas can increase, based on rate changes approved by the ICC.

“The important message for customers to heed is to always prepare ahead for the colder temperatures, Martinez said. “They can join the Budget Plan, which helps them level their monthly payments. They can also implement a few low cost/no cost energy efficiency tips, like investing in a programmable thermostat, or opening their blinds during the day to use the sunlight as an additional heating source.

While Martinez said Nicor can't provide a prediction for natural gas bills for this winter, she suggested customers look at Nicor Gas' Energy Efficiency Program on how to use energy wisely. For more information on the program, see www.nicorgasrebates.com.