LANSING, Mich. (AP) — Michigan residents on average will pay nearly $200 a month to heat their homes with natural gas this winter, an increase of up to 25 percent depending on how cold it gets.

State regulators, who released their projections Monday, blamed higher heating costs on the increased price of crude oil. They said Michigan will fare better than other states because it stores cheaper natural gas in underground tanks.

"Despite this, a dramatic (price) increase is headed our way," Michigan Public Service Commission Chairman Orjiakor Isiogu told reporters.

About eight in ten Michigan homes use natural gas.

The average residential heating bill will be $193 a month if the weather is as cold as normal, a $39 increase from last winter's $154 average. Customers may be spared a bit because temperatures are expected to be warmer, a continuing trend over the last five heating seasons.

Either way, bills will be 21 percent to 25 percent higher at a time people are grappling with higher food and gasoline prices along with the state's poor economy.

The price of home heating oil is up 13 percent; propane is 3 percent higher.

The Salvation Army has spent more this calendar year than last year to help Lansing-area households with their utility bills, and there are still three months left in 2008. Statewide, the charity has had to deny 6,000 people assistance with heating and electric bills because of a lack of funding.

"We're finding many young families coming to us for the very first time," said Major Robert Scott, commander of the Lansing branch.

Isiogu urged customers to weatherize their homes and turn down the thermostat at times. Other suggestions included contacting utilities immediately if customers have trouble paying bills, exploring utilities' budget payment plans and applying for financial assistance from the government and charities to avoid shutoffs.

Low-income residents, for example, can avoid losing electricity or heat if they pay at least 7 percent of their estimated annual bill each month from November through March. Seniors participating in the Winter Protection Plan do not have to make specific monthly payments but are encouraged to do so to avoid higher bills the rest of the year.

Isiogu also urged the poor to apply for the state earned income tax credit and a home heating credit.

Higher heating costs will come at a time utilities are shutting off more power or natural gas because of unpaid bills.

The number of electric shutoffs were up 39 percent, to 73,733, through June compared to the same period last year. Natural gas shutoffs were up 7 percent, to 67,406.

The Public Service Commission, which regulates many of Michigan's utilities, launched a Web site on Monday aimed at helping customers cut winter energy bills and find financial aid.

On Tuesday, a PSC commissioner will announce a campaign to help customers cut their power bills by switching to compact fluorescent light bulbs. Thanks to a state grant, about 500,000 CFLs will be available starting Wednesday at big discounts — $1 a piece — at stores run by The Kroger Co., Meijer Inc. and Menard Inc.

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David Eggert can be reached at deggert(at)ap.org

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On the Net:

State's "Be WinterWise" campaign: http://www.michigan.gov/bewinterwise