Fuel prices pinch region - Long, cold winter sharpens impact of the rising cost of crude

www.democratandchronicle.com By Todd Grady Democrat and Chronicle AIMEE K. WILES

Tom Sadler, a driver for Bisig Oil Corp., fills a city heating oil customer’s fuel tank earlier this week. The per-gallon cost of oil for Bisig customers has jumped from $1.05 in October to about $1.50.

(February 27, 2003) — Unusually cold weather and rapidly rising energy costs have combined to create monstrous heating bills for many local residents. Karina Barker of Ionia, Ontario County, said she has had to cut corners on the family budget in order to afford the propane heating bill for her home. “It’s hurting pretty badly,” Barker said. “We’ve had to completely rethink how we purchase groceries and other consumables.” The Barkers’ budget payment to heat less than 2,000 square feet of space has jumped this heating season from $93 to $241. Laron Hagan, a single parent of five, said monthly natural gas heating bills for the Rochester home he rents are nearly double what they were last year. “The bills are very high, they’re unbearable,” said Hagan, who is on injury leave from auto parts manufacturer Valeo Electrical Systems Inc. “I’ve been struggling with the amount to pay the bills.” Those whose homes are heated with oil also are feeling the pinch, as are drivers at the gasoline pump, where prices hit a local record last week. Skyrocketing energy prices are blamed on a number of factors. They include rising commodity prices for oil and natural gas, oil supply disruptions caused by a strike in Venezuela, a 28-year low in U.S. oil supplies and the growing likelihood of war in Iraq. Wednesday, the March contract price for natural gas on the New York Mercantile Exchange closed at $9.13 per million British thermal units, up $2.52 this week. The price of a barrel of oil for April delivery closed at $37.70, up $16.41 from a year ago. It’s the highest close since Oct. 16, 1990. Sen. Charles Schumer, D-N.Y., released a forecast Wednesday showing that Rochester and Finger Lakes-area residents would pay $855 more this year for gasoline and home heating oil. Schumer repeated his request that President Bush authorize release of oil from the nation’s reserve, which the administration has said it will do only to offset supply disruptions, not to bring down prices. The rising prices have many people seeking help to pay their bills. “People were managing as best they could,” said Florence Wawrzyniak, coordinator of the Red Cross/RG&E Heating Fund. “But now that we’re into the real cold weather that we’ve had in the last three to six weeks, we are seeing more individuals who probably would really never want to call us.” The fund has allocated more than 160 grants totaling more than $69,000 this heating season. “People are maxed out on these bills and the prices are continuing higher,” said Jim Bisig, co-owner of Bisig Oil Corp. in Greece. The per-gallon cost of oil for Bisig customers has jumped from $1.05 in October to about $1.50. RG&E did not release a heating forecast this season, but customers know bills are higher than last year’s. The utility delivers natural gas to about 296,000 customers. Galen Parker of Greece said he has never had a utility bill over $300 until now. Parker, an RG&E customer who heats his home with natural gas and uses a setback thermostat, called the situation “outrageous.” For some, their bills are a reminder of two years ago, when the price of natural gas soared to records because of high demand. That year, RG&E’s average residential customer, who used 745 therms of gas, paid $787.78 between November and March. Last year, the average residential customer used 604 therms and paid $536.55. It is uncertain what the final tab will be for this heating season, which ends in March. E-mail address: tgrady@DemocratandChronicle.com