As Gulf Coast residents brace for Hurricane Rita, Angie and Randy Arms are bracing for the storm's financial consequences.

The Gretna couple already are driving less because of high gas prices, Angie said.

Now they've started tightening the budget even more in preparation for winter's high heating bills. Angie anticipates spending less this Christmas on presents for the couple's 4-year- old son.

"A warm home is such a priority over other things," she said. "If something's got to give, it can't be that."

September natural gas prices spiked sharply after Hurricane Katrina, and the approach of Hurricane Rita -- a storm of similar strength -- has menaced the remaining natural gas producers along the Gulf Coast.

The anticipated reduction in capacity forced natural gas prices to record highs Thursday. Prices for natural gas to be delivered in winter months were more than twice as much as last year.

The prospect of escalating energy expenses has forced Nebraskans like the Armses to rethink how they'll heat their homes this winter. Angie said she plans to keep the thermostat lower and to stop using her home's gas fireplace.

The Armses also enrolled in Aquila Inc.'s level-payment plan, which helps families keep their energy bills steady despite fluctuating natural gas usage and prices. Nebraska and Iowa energy providers have seen increased interest in such programs since Hurricane Katrina.

"You should take care of what you can control," said Jan Davis, spokeswoman for Aquila. "We have reason to be concerned for the winter coming."

Allan Urlis, spokesman for Iowa's MidAmerican Energy Co., said consumers can reduce their bills by weatherizing homes, purchasing programmable thermostats and making sure furnaces operate optimally.

He added, however, that homeowners probably should start saving to pay their winter utility bills.

"You can take steps to make your home more efficient, but certainly it's a situation where you want to budget as well for higher heating costs."

Most Nebraskans already are paying 63 percent more for natural gas than they did a year ago. Natural gas prices in western Iowa are up 37 percent since August.

Prices for the gas purchased by the Metropolitan Utilities District have risen to an all-time record, exceeding even the highest prices of Nebraska's harshest winters. At the current price, the average January heating bill based on normal Omaha weather would exceed $215.

Natural gas prices can fluctuate widely month to month, so it's unknown whether today's record prices will last. Most rates in Nebraska and western Iowa are locked in for September, so the short- term price surge shouldn't immediately affect residents.

However, rates could climb again in October when they're readjusted.

Hurricane Rita appears poised to tear through parts of the region that Hurricane Katrina missed. The area accounts for about a quarter of U.S. natural gas output.

About 37 percent of Gulf Coast producers were still offline this week as a result of Katrina, said Mark Stultz, spokesman for the Natural Gas Supply Association in Washington, D.C.

He said Hurricane Rita could make those problems even worse.

"We're looking at several months to get full productive capacity restored."

Manage your natural gas bill

Install programmable thermostats. They cost as little as $40 and can cut natural gas usage up to 10 percent. Turn down the thermostat 3 degrees and cut usage up to 10 percent. Turn off the gas fireplace. Fireplaces that formerly burned wood may increase your heating bill $40 to $80. Newer, sealed units are more efficient. Enroll in a level-payment plan to keep bills steady despite fluctuating prices and usage. Get a furnace inspection to make sure it's working optimally. Get an energy audit to identify whether new insulation or equipment would be a good investment.