Washington, DC - Today, Senator Gordon Smith (R-OR) held a hearing of the Senate Commerce Subcommittee on Competition, Foreign Commerce and Infrastructure to discuss the supply and price outlook for natural gas, and the impact of continued high prices on residential consumers and industrial customers.

"The high cost of natural gas will strain the family budgets of Oregonians, particularly seniors on fixed incomes and low-income residents," said Smith. "The consequences of these increases will be dire for the state's low income energy assistance program, which helped over 54,000 Oregonians last year before running out of money."

The Energy Information Agency warned consumers of "higher heating oil, natural gas and propane prices" in its annual winter forecast released today. Crude oil prices have climbed 57 percent this year while the price of heating oil has climbed 45 percent.

The demand for natural gas has traditionally followed a seasonal pattern, peaking in the winter heating months. In the Northwest, consumers are going into this winter paying significantly more for natural gas than they did a year ago. Last week, the Oregon Public Utility Commission approved steep rate increases for the three natural gas companies that serve Oregon homes and businesses. These rate increases have been driven by the skyrocketing wholesale cost of natural gas. Rate increases for residential customers will range from 12 to 18 percent. The business customers of the state's largest gas utility will face increases of almost 20 percent.

The Industrial Energy Consumers of America estimates that U.S. businesses have paid an extra $90 billion in natural gas costs since June of 2000. Since that time, an estimated 90,000 jobs have been lost in the U.S. chemical manufacturing sector.

"Across the nation, and across every energy sector - be it natural gas, oil, gasoline, or electricity - prices remain high," said Smith. "The 108th Congress still has the time to pass national energy legislation before we adjourn. We must also pass the JOBS Act conference report, which includes an expansion of renewables eligible for tax credits."

The Subcommittee heard testimony from Mr. Guy Caruso, Administrator, Energy Information Administration, U.S. Department of Energy; Mr. Paul Wilkinson, Vice President, Policy Analysis, American Gas Association; Mr. Gary Huss, President, National Association of Manufacturers; and Ms. Wenonah Hauter, Director, Critical Mass Energy and Environment Program, Public Citizen.