The cost of heating homes with natural gas is down significantly from last year, and the impact could be especially big in the Twin Counties.

In Rocky Mount, prices for October are lower than last November's by 52 cents per therm, the standard measuring unit for natural gas. In Tarboro, the rate is down 45 cents per therm over that same period.

The lower rates are in line with reports of lower heating costs across the country after prices reached record highs last year.

"The cost of natural gas should be lower this winter than it was last winter, which should be good news to our customers," said Rocky Mount Utilities Director Rich Worsinger. "Our rate reflects that."

Home-heating rates are set using a base rate that accounts for shipping and utility costs, then adjusted each month based on the fluctuating price of the gas itself.

A forecast this month by the Energy Information Administration – a federal agency that monitors energy statistics – projected costs for all home-heating fuels to drop for the first time since 2001. Natural gas prices are predicted to be roughly 16 percent lower.

The effect of the lower prices will be wide-reaching in this part of Eastern North Carolina.

Edgecombe, Wilson and Nash counties, respectively, rank as the top three counties with between 20,000 and 50,000 occupied homes for percentage of homes heated by gas, according to 2000 census figures.

Analysts attribute the decrease to a number of factors. However, the most commonly cited reason is the recovery of the Gulf Coast after Hurricanes Katrina and Rita, which dealt a major blow to the nation's natural gas supply.

"When the two hurricanes hit last fall, it really affected the output coming out of the Gulf, reducing supply with actual production," said Frank Yoho, vice president for commercial operations at Piedmont Natural Gas Co., which provides gas to Rocky Mount and Tarboro. "The Gulf Coast has since recovered."

In addition, Worsinger said above-average temperatures last winter account for an increase in stored natural gas this winter, boosting the local supply.

"We had a much warmer than normal winter last year," Worsinger said. "There is a larger supply of natural gas out there right now."

Although costs have dropped from a year ago, officials warned that prices are historically high, and urged customers to conserve as much as possible.

"Ultimately, the customer controls how much gas they use," Worsinger said. "If they keep the thermostat down ... they will reap those benefits."

Cox North Carolina Newspapers, L.P. - Rocky Mount Telegram