January springs a surprise
Record warm weather saves on energy costs, but hurts some businesses
Record-breaking temperatures are pushing thermostats down across New England, cutting heating use roughly 20 percent to generate significant savings that could boost the economy.
The savings has not only rippled across households but also government, schools, and businesses that can spend less on heat and snow removal. Other sectors have also benefited, such as construction companies, which can take on projects they normally would have put off until the spring. At the same time, traditional cold-weather industries, such as ski resorts, are hurting while retailers are finding it hard to unload snow shovels, wool coats, and hats.
"In general, power bills and energy bills are lower, so that's a positive," said Rakesh Shankar, a senior economist with
So far this winter Boston's "degree days" -- a measurement of heating demand -- was 17 percent below last year's levels, according to the National Oceanic and Atmospheric Administration, the government agency that collects climate data. Homeowners and businesses in Chatham, at the elbow of Cape Cod, have been enjoying 22 percent less demand for heating than in a normal year, while many parts of New England are down about 18 percent.
Those figures track closely with a steep drop in sales by the region's biggest natural gas utility,
At
Yesterday Boston broke another record, with the temperature reaching 69 degrees, 7 degrees higher than the previous record for Jan. 6, set in 1913. The National Weather Service says the November-December period in Boston was the warmest on record, averaging 45.1 degrees. The average temperature in December was 6.3 degrees above normal. Dennis Feltgen, a spokesman for the National Weather Service, said an El Niño warming effect of moderate strength is expected to persist throughout the remainder of winter and in to spring. "Statistically, that would mean temperatures will average above normal," he said.
Depressed demand for heating fuels, caused by the warm weather, has added to the surplus of oil on world markets, which some economists expect could lower prices at the gas pump.
"The whole energy complex is coming down," said Kevin Lindemer, managing director at Global Insight Inc., an economic forecasting firm in Waltham. Lindemer estimated gasoline prices would be falling by 12 to 15 cents a gallon in the next couple weeks and could fall another 15 cents per gallon if the unseasonably warm weather continues.
The price s of heating oil and natural gas have been falling, but consumers have yet to see lower prices. Many utilities and heating oil companies purchased most of their fuels in advance of the winter when prices were high. A heating oil price survey released last week by the state Division of Energy Resources indicated the average price statewide was $2.37 a gallon, roughly where it has hovered since late summer.
"There's a lot of dealers stuck with product that they bought in advance to protect their customers," said Ken Williams, president of Scott-Williams Inc., a Quincy heating oil dealer. "As a result, prices haven't come down as fast as they might."
Joyce S. Rettstadt of Princeton said she doesn't know how much money she has saved on heating this winter but has complained to her heating oil dealer that her per-gallon price "hasn't dropped that much."
Rettstadt, 70, said she's a bit concerned about the warmest winter she can remember, which is making her apple tree blossom and forsythia come out. "This is crazy," she said. "It's really scary."
To some businesses, the unusual weather has been a boon. Sam McClain, chief executive of Capitol Construction in Everett, said the high temperature has allowed his company to do projects that normally would have been put off until spring, including brick and cement work and completing a three-story exterior stairwell at the Charles Hotel in Cambridge.
"We're picking up schedule items that we normally wouldn't be able to do this time of year," McClain said. He added that the high temperatures also save his company money. He can often do without portable propane heaters used to keep workers warm.
Golf courses also benefit. In Lakeville, both Heritage Hill Country Club and Poquoy Brook Country Club opened yesterday and today. On Cape Cod, the Dennis Highlands Golf Course remains open, along with perennial winter golf venue Hyannis Golf Club at Iyanough Hills, which normally closes only when snow has fallen.
"This is a gift," said Trish Frates, lounge manager at the Poquoy Brook golf course, where by noon yesterday 103 players were on the links and another 80 were booked to play today . The course is often able to stay open on mild winter days, but far more often this year, which is helping a lot of club employees get more work hours.
"We're just hoping we don't end up with a terrible, rainy spring that takes the gift away," Frates said.
Other businesses aren't doing so well. Across Vermont, most big ski resorts that have snowmaking capability are reporting that roughly half or fewer of their trails are open. No ski resort in Vermont reported any new natural snow in the last 72 hours as of yesterday morning.
Around North Conway, N.H., in the Mount Washington Valley, "businesses had a tough challenge to overcome this week" persuading people from further south in New England who have no snow in their backyards that there's enough up north to warrant a visit, said Marti Mayne, a spokeswoman for the valley chamber of commerce.
Indeed, the prospect of having to ski on all or mostly man-made snow, instead of the real stuff, has discouraged many skiers from heading north.
Brian LeBlanc, a technology consultant from Gardner, has stopped buying season passes and instead earmarks $500 to $700 for daily lift tickets when conditions are good.
"I wouldn't say this is the worst I have ever seen, but it is definitely as bad as any season I can remember in the past 10 or 15 years," he said. "I don't feel any urge to go ski on very limited man-made snow and pay $60 or $70 for a lift ticket, plus gas and food, to ski on sub-par conditions."
The weather is also wreaking havoc with retailers. Mark Johnson, a manager at Curry Ace Hardware in Quincy, said snow blowers, ice melts, and even window washing fluid just aren't selling the way they normally do at this time of the year. "With this weather here, we've still got people buying rakes and leaf bags," he said.
Retailers reported weak sales in December, in part because of warm weather, and said the situation may get worse if temperatures remain high. Jon B. Hurst, president of the Massachusetts Retailers Association, said most stores typically start stocking spring clothing sometime in February but right now the shelves are bulging with winter items.
"You've got to clean the shelves somehow," Hurst said. "Hopefully the weather helps you, but if not, pricing has got to do it."
Patricia Boudrot, a spokeswoman for
Bruce Mohl can be reached at mohl@globe.com. Peter Howe can be reached at howe@globe.com. Globe correspondent Eileen McSweeney contributed to this report. 
