2006 may bring higher utility costs

(AP) In the new year, Texans could see significant increases in utility costs, including electricity and possibly phone service.

Phone bills could spike after state legislators passed deregulation measures this summer. It's another sign that consumer watchdogs say could make 2006 more expensive for Texans than 2005.

“The price increases are at levels that are catastrophic for most people,” consumer advocate Carol Biedrzycki said. “And I can't predict that prices are going to go down. I wish I could.”

Atmos Energy, which provides natural gas to about 1.7 million customers in Texas, reports the cost of natural gas reaching record levels in December.

Production facilities in the Gulf of Mexico have partly recovered from damage earlier this year by hurricanes Rita and Katrina, but almost a quarter of the region's daily natural gas output remains down.

Home heating bills could rise by about 48 percent because of the prices, Atmos Energy spokesman Rand LaVonn said.

The constricted natural gas market has contributed to the increase in electric prices because gas is used to fuel power plants.

Electric companies across the state have planned increases. For instance, the second half of a 24 percent rate increase by TXU, which the Texas Public Utility Commission approved in October, takes effect Sunday.

Phone companies can also raise local rates after the adoption of Senate Bill 5, which its proponents intended to simplify government regulation of the telecommunications industry to promote competition and innovation.

But the Texas Public Utility Commission may consider regulations to the bill that could take effect in January, according to the newspaper.

___ Information from: Fort Worth StarTelegram, http://www.star-telegram.com