BGE Prices Expected to Rise

Here's the news release from BGE about the outlook for winter. Notice the optimistic headline with the more truthful subhead:

Baltimore Gas and Electric Residential Customers Who Purchase Natural Gas from BGE Can Expect Prices to be About the Same as Last Winter
BGE Estimates 5 Percent Increase in Total Gas Bill Assuming a Return to Normal Winter Temperatures
BALTIMORE, Oct. 29, 2007 – Baltimore Gas and Electric Company (BGE), a subsidiary of Constellation Energy (NYSE: CEG), today announced that its residential customers who purchase natural gas from BGE can anticipate a 5 percent increase from last winter in the gas portion of their total bill during the upcoming winter heating season, which begins Nov. 1, 2007 and runs through March 31, 2008. Assuming a normal winter, a typical residential heating customer can expect to pay approximately $690 during the heating season, compared to $659 for the same period a year ago. This is primarily due to a projected increase in natural gas use given last year's warmer than normal winter temperatures.
“We estimate the price for natural gas will be 92 cents per thermal unit, the same as last winter,” said Mark Case, senior vice president of strategy and regulatory affairs for BGE. “BGE customers are benefiting from relatively stable natural gas costs because of the mild hurricane season, an increase in U.S. natural gas drilling, and the filling of natural gas storage fields ahead of schedule. Additionally, BGE remains committed to increasing awareness about energy efficiency and helping our customers lower their energy bills through BGE's Smart Energy Savers, ProgramsSM.”
However, winter cold snaps and other events could also cause natural gas prices to increase. BGE plans for this type of volatility, however, and approximately half of the winter supply has been secured at a known price, which would help to moderate any increases required during the upcoming heating season.

The remainder of the release talks about how BGE cares about people who can't pay their bills and some energy-saving tips. You know, like get a pellet stove. Just kidding.