An off-campus student facing a $500 winter heat bill? Just a few months ago such an idea seemed preposterous, but after a slew of record-high bills hit Memphis residents a few weeks ago, this scenario seems common. Indeed, many off-campus students are paying even more.
"Usually, my energy bill during the winter months is around $250, but this last month my bill was $785," said Lisa White, a University of Memphis student. "I was shocked when I opened the bill. I thought it was a mistake."
White is not alone. In recent months, the wholesale cost for natural gas paid by Memphis Light Gas and Water has jumped from $2.41 per unit to more than $7.08 per unit. Since Tennessee has deregulated its utilities, the increase in costs has been passed on directly to area consumers -- leading to a doubling or even tripling of many residential bills.
In addition, December temperatures were significantly colder than average, leading the average customer to an increase in gas usage of over 50 percent.
The recent spike in natural gas prices is primarily due to increased demand, and the use of natural gas for non-traditional purposes -- including electricity generation -- in the wake of increased crude oil prices.
As a result, for the first time in decades, it is now cheaper to heat a home using electricity rather than natural gas. According to Glen Thomas, corporate communications specialist at MLGW, those hardest hit are Midtown residents, because many older homes in the area have inefficient natural gas heating systems.
Thomas said MLGW customers will see a temporary 13 percent rate decrease in the first few months of this year, but bills will continue to be high unless a serious effort to conserve energy is undertaken.
"Consumers can help cut their energy costs by keeping their thermostat at 68. For every degree above 68 that you set your thermostat, you can expect energy costs to be four percent higher," Black said .
The increase in natural gas prices is also having an effect at The U of M. The University does not purchase its natural gas from MLGW -- it has a direct pipeline to wholesale suppliers from Texas and Louisiana.
However, The University's purchase price for natural gas has gone up from $3.00 per unit in January 2000 to $9.92 per unit in January 2001. As a result of the price increase, University officials have looked at using alternative energy sources. "We are currently using fuel oil for heating 16 out of 24 hours each day," said Charlie Black, energy and environmental manager for The U of M.
Despite the higher prices, The University has been able to avoid cutbacks in its energy services. The Physical Plant department had a contingency budget ready in case of higher prices.
Black said the current energy crunch does not appear to be nearly as serious as the energy crises of the 1970s. "The sky is not falling yet," he said. "We've been reviewing operation hours, but we don't anticipate doing anything that will affect students directly. Our main goal is to keep students comfortable, because students can't study well when its cold. We try to keep the entire campus at 70 to 74 degrees at all times."
Students living in dorms can follow a few simple steps to maximize energy efficiency on campus -- avoid propping open doors, keep windows closed and dress in layers. Students should report hot areas to building maintenance instead of trying to cool the areas themselves.
