We Energies customers may save on natural gas, utility says

From an article by Tom Content in the Milwaukee Journal Sentinel:

We Energies' 1 million natural-gas customers might see savings on their home heating costs this winter after all.

A spokesman said Tuesday that the utility is revising its winter season forecast. Homeowners now can expect bills to be the same as or as much as 3% lower than last winter.

During the six-month heating season that runs through April, that would mean savings of up to $28 for the typical household. The Milwaukee utility was forecasting earlier that winter heating costs would rise by $35 to $45 for the typical household.

But natural gas prices have continued to fall, spokesman Brian Manthey said.

"We have a long way to go in this winter," he said, adding that how cold the winter is will be the biggest factor in determining what customers' heating costs will be.

The utility's forecast assumes that Wisconsin has normal temperatures this season. November was slightly colder than normal. If Wisconsin sees a repeat of last winter - when temperatures were 10% colder than normal - heating costs would rise slightly, Manthey said.

On Tuesday, the U.S. Energy Information Administration said a deeper recession will keep a lid on energy prices in 2009 and forecast that winter heating costs would drop in the Midwest.

The agency's monthly energy outlook said Tuesday that crude oil prices are projected to average $51 a barrel next year, down from $100 this year.

"The increasing likelihood of a prolonged global economic downturn continues to dominate market perceptions, putting downward pressure on oil prices," the report said.

For the first time in 30 years, world demand for oil is expected to fall for two straight years, this year and again in 2009, the agency said.