Northern News Services

Yellowknife (Oct 17/05) - Ashley Geraghty is concerned about what his heating bills will look like this winter.

His bill for oil is already double what it was last October. Last winter he paid approximately $89 a month to heat his family's 1,440 square foot townhouse. This year he estimates his monthly bill could reach $200.

"It's a hardship," he said, "It's money that has to come out of groceries or other things we want to do."

The increase is significant because they are a one income family, Geraghty said. His wife stays home to look after their two small children.

The Geraghtys are not the only people in Yellowknife who are affected by rising utility costs.

The price of heating oil has increased almost 60 per cent since 2003, said Finance Minister Floyd Roland.

Across the North, this translates into an estimated additional $30-40 million being spent on heating by individuals and the government compared to 2003, said Roland.

The monetary pinch will be felt every time a furnace turns on.

Heating oil prices in Yellowknife were at 96 cents a litre, almost a dollar with taxes, as of Oct. 12.

Prices in the city are slightly above the national average, which was 90 cents a litre on Oct. 11, according to MJ Ervin and Assoc., a Calgary-based company that specializes in tracking the oil industry.

A litre of heating oil cost 74 cents last year at this time.

"We are entering the winter season with relatively high prices," said Cathy Hay, a senior associate with MJ Ervin and Assoc.

The prices are being driven by high crude oil prices, which are 10 cents a litre higher than this time last year. The other factor is supply losses in the U.S., caused by the hurricanes, said Hay.

Heating oil prices have increased steadily since July. They peaked at 89.90 cents on Sept. 6, just after Hurricane Katrina hit. The rate has held steady for the last six weeks.

"It's fair to assume that consumers will be paying significantly more to heat their homes than last year," said Hay.

But no one wants to even guess what oil prices might do over the coming months. The weather is the wild card with furnace oil prices, Hay said.

Prices will be driven by supply and demand and that is closely linked to the severity of the weather. If the winter is cold, prices could be worse, she said.

In the U.S., prices are forecasted to be 30 per cent higher, but that's speculation, Hay said.

Government officials having been planning for higher heating costs since the summer when prices started to rise, Roland said.

There are no new programs planned to help with the costs.

Instead, government departments have been pooling their resources to provide the public with information about ways they can conserve energy, said Roland.

Information and programs are also being provided through a partnership with the Arctic Energy Alliance.

One of the long-term goals is to reduce the amount of energy used and find cleaner, more efficient sources of energy, said Roland.

Business has picked up at Arctic Energy Alliance, with people coming in to voice their heating concerns.

"It's scary," said Steve Outlet, a residential energy management specialist, referring to the price of fuel.

It's too late now to do major renovations for this season, but Outlet has lots of tips for easy fixes. His main advice is to seal all air leaks. This can save $150-200 a year, said Outlet.

Extra caulking should be used on anything that comes through an outside wall, like cable lines and pipes.

Electrical outlets and light switches can also let in drafts, so foam gaskets should be placed behind the panels.

Outlet also suggests having your home's furnace or boiler serviced.

It makes it safer and, like a car, you get better fuel mileage, he said.

Something most people don't think about is the combustion air intake into furnace rooms that draws in cold air from the outside.

There are electronic dampers for sale that open and close the intake as needed, said Outlet, adding that programmable thermostats are also a good idea.

There is also the other old fall back: turn the heat down and wear more clothes, Outlet said.