Natural gas, propane, and fuel oil costs are expected to increase this winter, reports the Michigan Public Service Commission (MPSC).

"All fuel costs are going up this winter," said commission spokeswoman Judy Palnau. "Prices have been going up over the last several years; that's a trend we've been seeing" in Michigan.

Ms. Palnau said the cost of fuels derived from crude oil, such as gasoline, fuel oil, propane, and natural gas, were near all-time highs during 2008 owing to high demand. The high costs to Michigan energy consumers.

Natural gas costs are expected to increase 25% to 30% this winter, said Tim Lubbers, director of Marketing and External Affairs for Semco, a major local natural gas supplier. He said any increase will be based on Semco's increased cost to purchase natural gas.

Natural gas suppliers are not allowed to make profit on the sale of the gas, Mr. Lubbers said, only on service and customer charges. He said the Port Huron-based natural gas supplier has not raised those charges in the past several years.

Natural gas prices for the area are now $1.068 per cubic foot, up from 78.5¢ per cubic foot in October 2007.

Semco supplies about 1,700 customers in Mackinac and Chippewa counties.

Propane and fuel oil prices are also up from this time last year. A gallon of propane costs $2.19, up from $2 per gallon a year ago, said Steve Autore of Autore Oil in Cedarville, and a gallon of fuel oil costs $3.34, up from $2.90 per gallon a year ago.

"It is very, very difficult to predict where prices could be" this winter, he said, and he would not speculate whether his prices would increase this winter.

To help customers with increasing fuel prices, Autore Oil offered a pre-buy price cap of $2.59 per gallon on propane purchases during September. Those who pre-bought last month will pay no more than $2.59 per gallon for tank refills if prices do increase in the coming months.

Autore Oil also offers a 10¢ per gallon discount on propane and fuel oil purchases that are paid in full within five days.

The average household uses about five or six gallons of propane a day during the winter, Mr. Autore said.

"Right now, our propane demand is pretty minimal," he said, but he expects that to change as the weather gets colder.

Electricity charges are also on the increase.

Edison Sault Electric Company in Sault Ste. Marie has filed a request with the MPSC to raise consumer rates up to 6% to recoup some of its annual power supply costs, according to Assistant Vice President of Rates Lee Baatz.

Mr. Baatz said, however, increased water levels in Lake Superior over the last year, allowing the hydroelectric generators to produce more energy, may warrant only a "modest" increase in rates beginning in January 2009. Rates at the electric company are currently 9¢ per kilowatt hour, up from 8.34¢ per kilowatt hour last winter.

So far in 2008, hydroelectric production contributes 35% to the supplier's total electrical output, which is up from 27% last year. The remaining 65% is purchased from coal, nuclear, and natural gas plants owned by its parent, Wisconsin Electric Power Company. Hydroelectric energy production, however, is still below the company's long-term average of 40%.

"We'd be fortunate to see (lake levels) continue to rise," he said. "Lake Superior goes through seasonal changes."

The Sault Ste. Marie-based electric company offers several plans to aid customers with bills, including equal monthly payment plans and discounts for seniors struggling to pay.

Autore Oil also offers an 11- month equal payment plan, in which a customer's previous 11 monthly bills are averaged together and the resulting figure is charged each month, as opposed to paying high bills in the winter and low bills in the summer. Mr. Autore said this makes it easier for customers to balance a monthly household budget.

Semco customers may call the customer service line (800-624- 2019) if they expect to have trouble paying gas bills this winter, Mr. Lubbers said. When they call, the gas company can structure a payment plan similar to those offered by Autore and Edison Sault Electric, as well as put customers in touch with local heat assistance agencies.

"It's important for customers to keep control of how much energy they use," he said.

The best way to reduce heating costs is for customers to make their homes more energy efficient, Mr. Lubbers said. He suggested installing new insulation, replacing or recaulking windows, covering windows with insulating plastic, lowering the thermostat one or two degrees, replacing old furnace filters, and keeping furnaces maintained as ways to help lower winter heating costs.

The state of Michigan created a Web site to provide tips on how to winterize and make homes more energy efficient. The site, www.michigan.gov/bewinterwise, includes tips on applying for state aid, lists of energy efficient products, and a county-by-county list of agencies that provide assistance to those who qualify, including seven in Mackinac County.

"There's a lot of information about fuel costs and how to lower your usage" on the Web site, said Ms. Palnau.

Sources that can help qualified applicants pay their heating bills in Mackinac County

Provided by State of Michigan Department of Human Services - St. Ignace, 643-9550 Area Agency on Aging - Escanaba, 786-4701 or 800-338-7227 Michigan Community Action Agency Association - Sault Ste. Marie, 623-3363 or 800-562-4963 The Salvation Army - Sault Ste. Marie, 632-6521 THAW Agency Participants - Sault Ste. Marie, 632-3363 or 800- 562-4963 Weatherization Agency - Sault Ste. Marie, 632-3363 or 800-562- 4963 211 & Other Services - Escanaba, 211 or 800-338-7227