By MIKE CORN

mcorn@dailynews.net

Get ready for a dose of sticker shock -- in the envelope that contains your utility bill.

While Hays-based Midwest Energy has been given permission to raise its electric rates by about 13 percent, it's the cost of natural gas that will be used to heat homes this winter that might be the greatest cause for concern.

Natural gas costs are expected to be anywhere from 20 percent to 30 percent higher this winter compared to a year ago.

"That depends, of course, on how cold this winter is," said Midwest spokesman Bob Helm.

All of those costs, he said, are passed along to customers.

Despite the forecast for increased costs, Helm said the latest prices were on par with what was being charged a year ago. And they are cheaper than what they were in June.

On Wednesday, natural gas prices were $9 for 100 cubic feet, compared to $12 in June. Midwest measures customer use in therms, a tenth of the 100 cubic feet unit that it is sold on the open market at.

As a result, if natural gas is selling at $12 on the open market, a therm would cost $1.20, Helm said.

Be that as it may, the forecast is calling for an increase in prices, back up into the $12 to $14 range.

That's because natural gas has been in strong demand as a means for generating electricity, not to mention the overall increase in fuel costs, be it gasoline, diesel, propane or coal.

Midwest uses a hedging program, purchasing at least some of its expected supply of gas prior to the onset of winter -- when prices are at their highest.

But, there's only so much Midwest can buy, considering it has to store the natural gas.

"You do pay rent to store natural gas," he said.

And because Midwest Energy isn't a big player in the utility market, it generally has to partner with someone to share storage space.

"You can't store everything," he said. "You only purchase a certain percentage for backup."

The anticipated higher prices -- for both heating and lighting costs -- are sure to cause a myriad of problems for people who already are struggling to pay their bills now, Helm said.

"Probably, we'll have more people now who need to get on a budget plan to spread out those peaks and valleys," Helm said.

And now is the time to take action, he said.

"Absolutely, consider it now," Helm said. "Get on the plan now."

What the budget billing plan does is average out natural gas or electricity costs and sets an average monthly cost.

Individual plans are reviewed at least quarterly, so there are adjustments along the way, but they generally are not significant.

"Mine has adjusted $10 down to $15 up," Helm said of the budget plan he personally has.

But don't stop there, he suggested.

"The second thing now is to do any energy efficiency measures they can do," Helm said, citing caulking of windows or adding insulation to a residence.

Helm said Midwest is awaiting approval from the Kansas Corporation Commission for a loan program that is designed to help customers pay for energy efficiency improvements, the cost of which would be repaid from the savings. That program now, however, is on a trial basis and is not available in all areas served by Midwest.

"We're expecting any day now, we'll get approval," he said.

Midwest also has several other programs available to check energy efficiency in homes.