Released July 15, 2008

MADISON, Wis.--While the national spotlight focuses on rising gasoline prices at the pump, natural gas prices are also quietly going up, nearly doubling over the last year. Natural gas price hikes will affect not only this winter's heating bills, but also electricity and fertilizer prices.

"We're all focused on gas prices right now," says Pat Walsh, co-director of the UW-Extension's Solid and Hazardous Waste Education Center. "But higher natural gas prices could cause problems for families, businesses, farmers and local governments."

Natural gas is used to produce electricity, and some business and residential customers around the state have already seen their bills jump.

Making energy conservation investments in your home now could pay back immediately, Walsh says. He advises contacting Wisconsin Focus on Energy ( http://www.focusonenergy.com/) for tips on reducing electricity use and weatherizing your home; for example, by sealing air leaks and fortifying insulation. Focus on Energy offers cash-back rebates to homeowners who make improvements in their homes based on suggestions from energy consultants.

Farmers will feel the effects of high natural gas prices in several ways, Walsh notes. Because natural gas is the major feedstock in agricultural fertilizers, fertilizer prices are going up.

"High natural gas prices will have a direct impact on farmers who might be trying to lock in a price for fertilizer," says Walsh. He suggests farmers take a close look now at fertilizer prices as they plan their spending.

Manufacturers who rely on natural gas for some of their production processes will see increased electrical and natural gas bills. And local governments that must operate within predetermined budgets may need to make adjustments for spiraling energy costs.

Why is natural gas so expensive?

Most years, the price of natural gas declines in late spring and early summer when consumers don’t need energy for heating or air conditioning. But this year, natural gas prices have continued to rise along with other energy sources such as crude oil. Utilities are having to pay high prices continuously and those costs are passed along to consumers.

Others speculate that the natural gas network being out of service for longer than expected this year contributed to the problem. Yet another concern is that utilities may not have stockpiled enough natural gas for the coming months. Some analysts point a finger at speculation by investment banks which buy commodities, including energy.

Whatever is driving the price hikes, now is the time to take steps to become more energy-efficient. "Consumers can probably save some money if they think about saving energy now," says Walsh.

For more information on smart energy use, contact your local county UW-Extension office, http://www.uwex.edu/ces/cty/ .

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http://www.uwex.edu/news/2008/07/take-steps-now-to-offset-natural-gas-price-hikes

Contact: Patrick Walsh, 608-265-8152, pat.walsh@ces.uwex.edu