State utility regulators are sounding the alarm early for the possibility of record home heating prices this winter.

Public Service Commissioner Tony Clark said he's worried because natural gas prices are rising during the summer season, a time that usually sees a drop in prices on slack demand.

"What's happening with natural gas prices this summer is truly frightening when you think of the impact it will have on winter heating," he said.

Since the beginning of the year, natural gas futures have gone from about $8 per MMbtu to $13 per MMbtu. Natural gas is a common fuel used to heat homes and to generate electricity.

PSC Commissioner Kevin Cramer said he continues to hear about increased natural gas demand. The hot summer means more people are using air conditioners, and international growth is leading to more demand from overseas.

Normally, summer is the time that demand is low enough that companies are buying natural gas to put it into storage for the winter.

"I am very concerned," Cramer said. "Though I am pleased that our utilities are sending out warnings and saying that this could be a very tough winter."

Natural gas price spikes have caused home heating cost jumps in the past. In the fall of 2005, hurricanes Katrina and Rita led to a major natural gas price spike that caused home heating worries that winter.

Natural gas prices had moderated since then, beginning their ascension at the beginning of this year.

Clark said he's disappointed that these spikes usually fall on consumers, and said the government should be doing more to encourage increased drilling and production.

(Reach reporter Jonathan Rivoli at 250-8264 or jonathan.rivoli@bismarcktribune.com.)