In fact, the gas costs for this June are the highest for any month, winter or summer, for the last 2 1/2 years. This is particularly startling because gas costs during the summer months are typically the lowest since the demand for heating is minimal. It must be understood that we are talking about the market cost for the gas itself and that those market costs are not regulated by the Public Service Commission. The PSC only regulates the transmission and distribution services these utilities provide as they deliver the gas from source to your home or business.
These market-driven costs are well beyond the legal authority and practical capacity of the Montana PSC to tame. Natural gas is sold in national, sometimes international markets, that frequently follow the changes in the oil markets, nationally and internationally. We are all aware that the oil markets have risen to $130 per barrel or higher, compared to $65 just a year ago. Other fuels are following a similar pattern.
Clearly, the most immediate and efficient way to avoid the looming problem of unmanageable utility bills is to employ effective conservation measures that preserve comfort and convenience. That process must begin now, even though winter may seem a long way off. It takes time to identify and install the most effective conservation measures, such as additional insulation, replacing windows and doors, and acquisition of energy efficient appliances. Waiting until the high heating bills come in this fall to choose a conservation response will leave only one choice available n turning down the thermostat n meaning the consumer will save only by shivering in the dark. That is an unacceptable circumstance I can simply not wish on anyone.
There are some wonderful programs available from government (taxpayers) and utilities (ratepayers) to provide needed energy assistance for low-income consumers. Surely, we need to prevail upon our Legislature and Congress to raise the qualification caps and the level of assistance available through those programs. However, unless we lead with conservation, those programs, while providing absolutely essential assistance to many Montana families, also constitute a hidden subsidy to utility companies, and landlords who do not invest in energy conservation measures since their tenants pay the utility bills.
To their credit, our utilities do offer a number of energy conservation programs and incentives to their customers. To their credit, responsible landlords have invested in energy conservation measures on their property. But we know that more must be done in order to avoid the impending calamity facing thousands of families and businesses across Montana.
The Montana Public Service Commission is now launching a major effort to facilitate the adoption of effective conservation measures by residential and small business customers well ahead of next winter’s heating season. We will begin with a public meeting on June 24 at 1:30 p.m. at the commission headquarters in Helena, where representatives of the three major utilities will present their analysis of market expectations for the future. The public can view this meeting as it occurs on the Internet at psc.mt.gov/eDocs/#Calendars. Archives of the meeting will be available after it occurs at the same Web site.
We will follow this meeting up with numerous efforts to help the public become aware of what options are currently available to them, such as home energy audits, conservation rebates and incentives, along with the details of bill assistance programs. We seek to enlist the support and cooperation of other agencies of our federal, state and local governments, our state’s utilities, other private firms, and public and community organizations. Each of us must actively confront this problem in our homes, and at our work and businesses. Most importantly, we must look out for our neighbors to ensure they are equipped with the resources to deal with this unparalleled challenge.
Greg Jergeson is chairman of the Montana Public Service Commission. He represents PSC District 1 and lives in Chinook.
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