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Tuesday, 1/30/2001
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City

Committee reviews gas prices

By Heather Mangold
City Editor

The Senate Energy and Economic Development Committee gathered Monday discussing possible solutions for Indiana citizens, including Purdue students, who are suffering from high natural gas prices.

"Constituents have a hard time keeping up with gas prices among everything else they have to pay for," said Senate intern Cody Maurer.

Maurer attended the committee's meeting and said coal and natural gas industry professionals, as well as environmentalists, came before the committee. They shared their viewpoints on what would be the best way for Indiana to make a new energy and economically efficient state.

The committee and the guest speakers worked to create an outline that will ensure Indiana does not fall into the same energy trap California now faces.

Sen. Ron Alting, R-22nd, said, "We need to view the 'bigger picture' when addressing the energy crisis in our state and country."

Alting said, "We should specifically look at new ideas regarding how we might make use of energy and fuel."

The committee entertained the idea of inserting more power plants and peak plants for energy assurance. Peak plants would be created and would only be used during peak energy use, said Maurer.

Fortunately, Indiana has its own natural resource, coal, which should last for 250 years, said Maurer. Because of this, Indiana should not be overwhelmed with things that would cause gas prices to rise.

Dan Schuster, project manager for engineering utilities at Purdue, said that Purdue has also been affected by rising prices.

Purdue airports and the aviation technology facility are heated with natural gas and have felt the impact of rising natural gas prices.

"You could say that the commodity portion of the gas bill has more than doubled in the last six to eight months," said Schuster.

Commodity portions of heating bills vary depending on which rate structures are arranged for the natural gas consumer. Purdue's rate structure allows Indiana Gas to provide places such as the airport with an altered natural gas purchase plan, said Schuster. Purdue consumes a large amount of natural gas, so it is permitted to buy its gas directly; it does not have to purchase the gas through a gas company.

The Purdue Village is also heated with natural gas.

Purdue Village director, Carolyn Newlin, said that the heating rate for the village is six times more than it was last year at this time.

Heating costs played a significant part in a six- percent rate increase that will be implemented for next year's residents of the Purdue Village.

 

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Committee reviews gas prices

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City editor:
Heather Mangold

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Purdue Exponent 2001