As in much of the northern United States, the mild winter has lessened consumption of heating fuel in Duluth, which in turn, has helped to lower the price of gas, local experts said Friday.
Last month was the warmest December on record, according to the National Weather Service in Duluth. And while January 2006 also was the warmest January ever, the nascent days of this month are even more tepid, with an average high of 32 degrees and an average low of 22.5 degrees.
"As you can imagine, the unusually warm weather is great news for consumers and a mixed blessing for us," said John Heino, president and CEO of Como Oil in Duluth.
Per gallon sales of fuel oil are down 15 percent from last year, Heino said.
About 22,000 Duluth homes -- or 70 percent of the city's residences -- are heated with natural gas.
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"It is safe to say that the numbers for consumption are down," said Eric Schlacks, gas and energy coordinator for the city of Duluth.
With fewer people turning up their thermostats, natural gas and propane companies also have greater reserves, Schlacks said. Along with a mild hurricane season and stable energy markets that translates into lower costs for consumers, he said.
The city's price for natural gas significantly dropped from $1.60 per hundred cubic feet in December 2005 to $1.03 per hundred cubic feet last month, Schlacks said. That's despite this fall's rate hike to help fund the city's retiree health-care liability.
The regional price for propane last week was $1.83 a gallon, down 10 cents from a year ago.
Heating oil is at $2.47 per gallon, which is actually up from last year's $2.33 a gallon.
But the overall lower prices don't mean that fewer Northlanders are asking for heating fuel bill assistance, said Dana Hiltunen, assistant housing director for the Arrowhead Economic Opportunity Agency. The heating assistance agency is on last year's pace, with 7,937 applications so far, she said.
"There is always a high cost on being able to heat your house," Hiltunen said.
The Minnesota Department of Commerce, which distributes federal heating assistance grants, reported similar findings. "We always give out all the money we receive," said Bill Walsh, department spokesman.
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Hiltunen said a lot of heating assistance clients are still trying to get out from under last year's heating bills.
Energy prices remain much, much higher than several years ago.
After Hurricane Katrina in 2005, prices for fuel oil, propane and natural gas jumped by as much as 50 percent. In 2000, fuel oil was $1.42 a gallon, Heino said.
CHRIS HAMILTON covers the Duluth community and city government. He can be reached weekdays at (218) 279-5502 or by e-mail at chamilton@duluthnews.com .
