I know it is midsummer and the last thing you want to think about is how much it will cost to heat your home in a few months. But it is coming, and it will be costly.
The Wall Street Journal reports that already in New York, more people had their utilities shut off for nonpayment after last winter than the year before. If you use natural gas, expect your bills to rise 30 to 50 percent this winter. If you use home heating oil, your costs could double.
The
Journal said the suppliers themselves are worried about the prices:
In New York state, there was a 41 percent increase in shutoffs of utility services among people who did not pay their bills in April 2008 versus April 2007, to 31,305 from 22,209, according to the Public Service Commission. (Utilities are prohibited from shutting off customers for part of each winter but restrictions lift in April.)
Many of the heating-oil retailers are small firms that are ill-equipped to handle the increased up-front costs. While they need to pay their suppliers within a few weeks, their customers often need 30 days or more to settle their bills. Some are worried they might be caught short.
Ray Hart, president and founder of Hart Petroleum on Long Island, says his customers are already asking for 100-gallon deliveries instead of filling their tanks, which can be 250 gallons or larger. An average-sized home on Long Island consumes about 900 gallons of oil a year for heat and hot water, creating a $4,500 expense.
"If we have a cold winter, where's the money going to come from?" he asks. "You're looking at a terrible situation."
Keep in mind, the utility companies are often not allowed...
