Many households switching to natural gas

Although oil prices are not expected to spike this winter, local utility companies report thousands of people continue to switch their heating fuel to natural gas.

An NStar spokesman said his company expects to make 2,500 conversions to gas this year while a National Grid spokesman said the company expects to complete about 6,200 between April 2013 and March 2014, up from 5,900 during the prior year.

The 2,500 figure is comparable to last year, but the utility saw a spike a couple years ago, NStar spokesman Michael Durand said.

Durand said with more domestic supply of natural gas, prices have come down.

This winter, the state Department of Energy Resources projects it will cost the average heating oil customer $3,474, or 0.1 percent more to heat their home than last winter while it will cost the average natural gas customer $973, or about 4 percent more. The increasing cost accounts for weather, where this winter is projected to be 5.5 percent colder than last winter, according to the agency.

“We’re hopeful prices will remain economical to consumers,” said Michael Ferrante, president of the Massachusetts Energy Marketers Association. “But, it’s expensive.”

Ferrante said the price of crude oil has fallen recently in part because of some signs of easing tensions in the Middle East, but many factors could change the price in the future.

Ferrante said heating oil companies “are competing heavily with natural gas utilities. …It’s enticing for consumers to look at that fuel when it’s less money (than oil).”

Bob Powell, a sales manager at MetroWest Oil Service in Framingham, said he expects oil prices will continue to gradually decline this winter.

Supply of heating fuels overall is high, so prices should not spike, he said.

He said although natural gas is cheaper now, “we just feel eventually, it will all balance out,” as more people switch to natural gas, driving up the demand.

Mike Nicholson, owner of Nicholson Plumbing, Heating and Air Conditioning in Framingham, said he sees customers taking advantage of rebates and cheaper natural gas to make the switch from oil to gas. More homeowners also have access to natural gas service than a few years ago, he said.

“We’re continuously seeing more conversions to natural gas,” said National Grid spokesman Jake Navarro. “It’s still a more efficient alternative price-wise and also environmentally.”

Wicked Local