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With natural gas prices this winter expected to be 50 percent higher than last year, Pacific Gas and Electric, in conjunction with the consumer group The Utility Reform Network (TURN), has developed two programs to help consumers manage their bills this winter.
One program will provide a discount in the billing to customers who reduce their gas usage this winter. The second program allows customers to defer a portion of their winter payments until the spring.
Gas prices have increased significantly across the country because of damage to the natural gas infrastructure in the Gulf of Mexico caused by Hurricanes Katrina and Rita. Even though California purchases its gas primarily from Canada, the damage in the gulf region has dramatically affected the overall market price.
PG&E spokesperson Jeff Smith said prices were already on the way up "because the demand had increased while supplies had remained level."
Smith said PG&E expects December and January prices to be 40 percent to 50 percent higher than last year, as supplies decrease while demand increases.
However, that would be an improvement from recent months, Smith said. In October 2005, prices were 71 percent higher than in October 2004.
In response to the higher prices, PG&E offers a 20 percent discount for customers who reduce their natural gas usage by 10 percent between Jan. 1 and Mar. 31. The average customer able to decrease gas usage could save about $200 this winter, according to a PG&E press release.
Under the company's cost deferral program, customers will be able to delay paying an estimated $50 of their winter costs. The deferred payments will be spread out over a period of seven months starting in April, enabling customers to make smaller payments during months when gas bills are lower.
Smith said PG&E offers rebates for customers who purchase energy-efficient appliances or insulation. He said less costly ways for customers to cut back on energy costs include making a small investment in caulking to fill in any open spaces around doors or ventilation. Replacing furnace filters is helpful as well, Smith said, as this will improve the efficiency of the furnace
At no cost, customers can simply turn down their thermostats to 68 degrees when people are home and 56 degrees at night or when no one is home.
"That will save you 10 to 15 percent right there," Smith said.
"On a sunny day, even though it's cold outside, open your blinds, and that allows the natural sunlight to heat your homes," he added.
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