FRIGID WEATHER MEANS
MORE ENERGY USAGE, HIGHER BILLS;
AUB GAS STRATEGY PAYING OFF

ATHENS, Tenn. - A recent wave of frigid weather brought out the blankets and heavy top coats as area residents took measures to stay warm.

But cold-weather clothes and cozy quilts aren’t the only symptoms of a wintertime freeze. Temps in the teens also mean that every home and business likely will use considerably more energy to maintain a comfortable indoor environment.

“There’s really no way around it. Cold weather such as we have seen in this new year is going to show up in your utilities bill,” said AUB spokesman Wayne Scarbrough. “Whether you heat with natural gas or electric power, your heating system is going to work overtime to keep your home warm, especially when temperatures dip into the teens and twenties as they have in January.”

AUB monitors weather conditions continuously, tracking highs and lows, degree days, precipitation, and other weather facets. According to the utility's data, many of the days thus far in 2004 have seen sub-freezing temperatures, and several of those days were in the teens.

While this means more energy usage and higher bills regardless of heat source, AUB natural gas customers are benefiting from a pre-purchase strategy that AUB followed in 2003.

“Believe it or not, measures we took earlier in the year are keeping gas bills below what they could be,” Scarbrough said. “Our strategy to purchase natural gas earlier in the year for storage and to use a rolling 12-month average of our wholesale cost in calculating customer cost is shielding our customers from recent price spikes in the wholesale natural gas market,” Scarbrough said.

Within January, wholesale natural gas shot up to more than $7.50 per decatherm, vs. the average purchase price of around $5.55 that AUB paid earlier in the year, said AUB General Manager Eric Newberry.

“A couple of years ago, natural gas was only about $3.00 per decatherm. It shot up to more than $10.00 per decatherm for a period, so we began laying our strategy for purchases that would average our costs down as much as possible in today's volatile market,” Newberry said.

Newberry said that it is no surprise when customers are upset by the amount of their utilities bills at this time of year.

“We understand why customers feel the way they do. They see their gas bill and think that AUB is making a large profit,” he said. “But the fact is, we’re not. Weֻre actually doing what we can to keep the rates as low as possible while running our community's utility in the businesslike manner that it deserves and requires.”

“But, believe it or not, had we not made these strategic purchases earlier in the year and were instead passing along the wholesale market rates to our customers, bills would be dramatically higher than they are.”

AUB recently had a rate adjustment for electric power that followed TVA’s recommendations on what the local utility needed to do to ensure financial stability and equity among customer classes, such as residential versus commercial.

“We realize that rising bills put a greater financial burden on all customers,” Scarbrough said. “Our goal is to run the utility as a business with the best customer service possible, minimize bad debt that hurts all ratepayers, and work with customers to see that their services are never interrupted due to bills not being paid.”

One way that the utility does that is by encouraging customers to use pay agreements when necessary. “We’ll work with any customer in good standing to arrange a payment schedule so that service is not interrupted in the future while the customer meets his obligation of paying for services they have already used,” Scarbrough said.

AUB has an on-staff Energy Advisor to help customers realize cost-cutting measures in the homes and businesses. Scarbrough encourages customers to call AUB and speak with the Energy Advisor, Hugh Rodgers, about what can be done to lower utility bills. Rodgers can come to customers’ homes or businesses to help out. Tips include:

• Keep the cold out. Reducing air leaks can cut as much as 10 percent from an average household's monthly energy bill. Seal leaks around doors and windows-and anywhere else pipes or wires enter your home-with caulk or weather-stripping.
• Clean or replace the heating/cooling system filter every month. Use your utility bill is a reminder.
• Setting your thermostat back by 10 degrees for eight hours a day can cut your annual heating bill by as much as 12 percent.
• Keep your furnace tuned and in top condition. A properly maintained furnace can save 6 to 10 percent of your heating bill. Have a certified technician check your furnace and make necessary adjustments.
• Check ductwork and vents. Properly seal and insulate ducts. Keep vents clear of obstructions.
• Control house temperature. Keep the thermostat on the lowest setting at which you are comfortable. Each degree you lower the thermostat can save you 2 to 3 percent of your energy bill.
• Add insulation to your attic -- it can also pay big dividends. Most homes in the Southeast should have at least an R-30 insulation level. Going from an R-19 level to an R-30 level can save 15 percent in heating costs.
• Install storm windows: If this isn’t possible, then tape plastic sheeting over each window to reduce heat loss.
• Conserve your hot water. Water heating typically accounts for 14 percent of your utility bill. Repairing leaky faucets, insulating the water heater tank and hot water pipes, and installing low-flow faucets and shower heads can result in significant additional savings.