Students living off-campus in drafty old houses should be prepared for higher energy bills this winter.

A report released by the Michigan Public Service Commission, a division of the state government that manages energy, communication and transportation services, said heating bills across the state are expected to increase by more than 20 percent this winter. But the high projection is something the University was prepared for.

University Housing spokesman Peter Logan said his office foresaw rising utility costs when planning its budget for the current school year.

Of the department's $103 million budget, $9 million is set aside for utility expenses — a 13.6 percent increase from the previous year, Logan said. Though higher energy bills don’t directly affect students living in residence halls, University Housing rates increase almost yearly to compensate for changes in the price of natural gas, he said.

Housing has recently worked to control energy use in the dorms by providing educational programs on sustainability and encouraging students to reduce their energy consumption, Logan added.

Judy Palanau, a spokeswoman for MPSC, said there are several reasons why heating costs would increase sharply this winter, including a worldwide increase in the demand for natural gas and high fuel prices this summer.

“The demand for natural gas has been increasing not only in our country, but around the world,” she said. “China and India are developing rapidly, they are also using natural gas.”

Palanau said Michigan’s gas prices are typically among the nation's lowest because energy companies can purchase the gas cheaply during the summer months and then stockpile it underground.

But this summer, with gasoline prices topping $4 a gallon, natural gas was more expensive than the current price of natural gas, she said.

“We do need to use the gas that we have in storage,” she said. “That was the gas purchased at the higher price.”

DTE Energy spokesman Scott Simons said when that gas runs out, the utility bills should decrease.

“We are hopefully going to see natural gas prices come down at some point during the winter, but it’s hard to say how much or when,” he said.

Simons said the best way for students to reduce their energy bills is to turn down the thermostat.

“Every degree that you lower your thermostat, you can save about 3 percent of your heating bill,” he said, suggesting that students buy a programmable thermostat that automatically lowers or raises the temperature.

LSA junior Carly Coates, who shares a house with seven others, said she and her housemates could do more to save money on energy. She said she knows her energy bills could increase this winter, but said she doesn’t plan on changing her day-to-day habits.

“We’re not going to, probably, make any large changes,” said Coates. “Twenty percent eight ways isn’t that much.”

LSA sophomore Anna Brock said the University’s increased focus on energy conservation has led her to pay more attention to the issue.

“I don’t think I’ll change what I do, because I’m already thinking that way,” she said. “Saving energy: saving water, just turning off everything after you leave makes a huge difference anyway.”

Tammy Moon, leasing agent for Bartonbrook Investments, said although the rental company is aware of the increase in natural gas prices this winter, it has no plans to reduce energy usage in its apartment complexes.