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Get ready for sticker shock on your heating bill

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Natural gas prices are expected to rise some 73 percent this winter compared to last, partly due to disruptions in the oil refinery process brought on by the Gulf Coast's hurricanes. (Photo by Tim Boyle/Getty Images)

St. Paul, Minn. — (AP) - Minnesotans can thank hurricanes for causing a large spike in natural gas prices.

Home heating bills will probably increase about 73 percent next month. An average home heating bill will cost $77.19 in October compared to $44.63 last year, the Minnesota Commerce Department predicts.

"This is the reality check," said Vince Chavez, supervisor of the Commerce Department's natural gas unit. "I've never seen a price this high in my 20 years' experience with natural gas."

Many customers will turn on their thermostats for the first time in October. CenterPoint Energy, Minnesota's largest natural gas utility, will charge 77 percent more than last year in October.

"We don't know what the gas is going to cost in November or December or January yet," said Bruce Gordon, a spokesman for the Minnesota Department of Commerce.

Though Minnesota doesn't get natural gas from the Gulf Coast, the storms increased national commodity prices. Gas production in the Gulf was shut down in places because of the hurricanes.

Anticipating the increased rates, more people are applying for heating assistance.

"We get a lot of walk-ins from people who are right now actually needing help to avoid disconnection, and (winter) hasn't even started," said Catherine Fair, energy assistance manager.

Officials say Minnesota home-heating customers will pay an average of $1.31 per therm, which is the unit used to calculate natural gas on heating bills.

Chavez is encouraging customers to program thermostats and perform home energy audits. They can also weatherize their homes. Utility companies offer payment plans that divides price spikes over the course of a year.

Though Minnesotans will be paying more in the past, they are probably paying less than people in other states.

"Our gas that we're buying for Minnesota customers and their use is less than the delivered price to other hubs, including in the South," Chavez said. "Minnesota has relatively lower prices in general."

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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