Natural gas: Costs prevent fuel from having an impact (Maine)

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http://pressherald.mainetoday.com/news/state/050904natural.shtml

Natural gas is the leading source of home heat in the country. And in the late 1990s, when two new gas pipelines were being installed from Canada through Maine, it seemed as if natural gas might erode the market dominance of fuel oil in the state.

But that hasn't happened. Strong demand from gas-fired power plants and tight supplies have pushed natural gas prices higher, according to Charles Moran, a spokesman for Northern Utilities, the state's largest residential gas provider. These and other factors have put natural gas prices on par with oil.

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That reality is reflected in Northern's current rate case filing at the Maine Public Utilities Commission. If the rate is approved, a typical home that uses gas for heat, hot water and cooking will see winter rates rise 16 percent from last year. That will push the average monthly cost to $263 a month, or $1,579 for the six-month period covering November through April.

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In Massachusetts and New Hampshire, Northern's parent company, Bay State Gas, offers free home energy assessments to identify the best ways to cut gas bills. The program will pay half the cost - up to $1,500 - to help weatherize homes. Rules are still being drafted in Maine, and it's not clear yet if these programs will be available here.

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