Residents feeling effects of high heating costs

Published 12:00 am Monday, March 3, 2003

Increases in wholesale oil prices are causing a rise in heating costs for local homeowners, organizations, and business people.

The increase is due to the rise in heating fuel costs. According to the Associated Press, the cost, per gallon, on oil futures has risen to its highest price since 1979. Natural gas prices are up 37 percent on the month.

These rising prices are causing some to put more thought into the way they live their day-to-day lives.

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&uot;I have been keeping the thermostat set at 66 daytimes and 61 at night,&uot; said Irene Mittelstadt of Albert Lea. &uot;Sweat pants and shirts are the dress for the day.&uot;

Mittelstadt says she is on a plan with Alliant Energy to help ease the budgetary problems. Two years ago, when heating prices were high, she received a bill for more than $500 for one month. She then switched over to Alliant’s budget plan, which uses estimated usage for the year and takes a flat monthly fee, the balance of which is adjusted at the end of the year.

For 2003, she is paying a monthly bill of $160; the bill for this month, if not on this plan, would be $199.53. The system, she says, stabilizes her monthly fees, which makes it easier for her to pay her bills. Others not on the budget plan have seen monthly bills exceeding $300 for heating this winter.

Budget plans, alternative heating methods and careful weatherization have kept bills lower for many, but organizations that help people in need have seen more demand than usual for bill assistance.

&uot;We do have more people applying for (energy assistance) than ever before,&uot; said Susan Thompson, the energy assistance program and weatherization coordinator for the Southeasterm Minnesota Community Action Council (Semcac).

Thompson said the amount of energy assistance applications is much higher than usual, and while the organization is keeping up with these applications, the program is based upon funding availability from the state, so she thinks there will be more scarcity over the next few years.

One apartment building owner, who wished to remain unnamed, said she would be raising rent due to the rise in heating oil prices. She said the apartments she owns are subsidized for low-income housing, one stipulation of which is that rent does not exceed a certain limit.

&uot;The heating costs are included in the rent,&uot; she said. &uot;Although we are still lower in rent than the county maximums, we find that we will probably need to raise our rents even further than we have because of the increase. This puts a much greater burden on our low-income renters.&uot;

Alliant Energy did not return telephone calls. Their Web site explains that they are not responsible for the rise in prices and rather the cost of fuel is driving their fees up.

Mittelstadt said she hopes the prices do not continue to rise, and not only for her sake.

&uot;Since such a large part of Albert Lea’s population consists of senior citizens, who live on very fixed incomes, it is a major problem this time of year,&uot; she said.