CHEYENNE -- Predictions this summer that natural gas prices in Wyoming would spike by up to 70 percent are not likely to hold true, the state Public Service Commission announced Thursday.

The PSC is now projecting a statewide average increase for residential natural gas customers of about 25 percent, a considerable revision from the earlier predictions of near historic price increases.

"The state of the national economy and high natural gas storage levels have contributed to falling wholesale natural gas prices, and those lower prices are reflected in the rates we expect to see this winter," said Christopher Petrie, chief council for the PSC.

The actual increase will vary by region. Some Wyoming customers will see rates similar to last year, while others will pay up to 40 percent more because of higher wholesale prices, according to the commission.

"Most Wyoming natural gas customers will still see higher bills than last year, and it is important that consumers continue to weatherize and make energy efficient choices as we enter the winter months," Petrie said.

Natural gas prices spiked this summer amid concern about hurricane-related supply disruptions and an abundance of speculation in the markets before the financial meltdown, officials said.

Following the PSC predictions about the near-record price jump this summer, Gov. Dave Freudenthal and other state officials urged residents to educate themselves about how to conserve energy and find help with high heating bills.

Those precautions may still apply to some residents, officials said, and Wyoming's Low Income Energy Assistance Program is available to help Wyoming residents with winter heating bills.

Residents qualify for LIEAP if their income is less than $1,863 a month for an individual, $2,508 for a household of two and $3,798 for a family of four.

Officials said it's difficult to explain all of the reasons why natural gas prices may have come down.

The end of the hurricane season and reduced investor speculation in the wake of the worldwide financial meltdown may be contributing factors, they said.

But officials warned that prices could still rise sharply if extreme winter weather causes a big increase in demand. Natural gas prices are expected to continue to rise over the long term.

"To the extent that we would have an unusually harsh winter, the prices could be more than we expect them to be right now," said Bryce Freeman, administrator for the state Office of Consumer Advocate, a watchdog for Wyoming utility customers.

Contact capital bureau reporter Jared Miller at (307) 632-1244 or {M7jared.miller@trib.com

BREAKOUT

Energy bill tips

Tips to save on your energy bill this winter

-- Install energy efficient appliances and furnaces

-- Replace furnace filters regularly

-- Use compact fluorescent lamps

-- Calk and weather strip windows and doors

-- Close heat vents in unused rooms

-- Wash laundry in cold water

-- Buy a programmable thermostat or turn down the heat

-- For more tips, visit http://psc.state.wy.us

Energy bill tips

Tips to save on your energy bill this winter

-- Install energy efficient appliances and furnaces

-- Replace furnace filters regularly

-- Use compact fluorescent lamps

-- Calk and weather strip windows and doors

-- Close heat vents in unused rooms

-- Wash laundry in cold water

-- Buy a programmable thermostat or turn down the heat

-- For more tips, visit http://psc.state.wy.us]]>