The potential closure of the Katahdin Paper Co. mill in Millinocket because of skyrocketing oil prices is bleak news, especially for the 208 people who may be out of a job. The struggles of a paper mill to remain profitable in the face of rapidly rising energy prices is an example writ large of the dire dilemma faced by Maine residents and businesses as they, too, consider how to pay substantially higher bills for heat, gasoline and other necessities.

Earlier this week, Katahdin Paper announced that it would indefinitely close its Millinocket mill in 60 days if it cannot find an alternate source of energy. The mill is in an unusual situation because it is 100 percent reliant on oil to produce heat and steam to run the many machines in its facility. The state’s other mills use a mix of biomass, hydro power, natural gas and electricity for the energy intensive papermaking process.

Last year, the Millinocket mill used more than 400,000 barrels of oil. On Thursday, oil was selling for more than $126 a barrel, more than twice the price last year.

“With the price of oil going in the direction it’s going, we just can’t keep up,” said Glenn Saucier, the company’s spokesman.

Gov. John Baldacci, who has worked to keep other troubled mills open, said he is committed to keeping the mill operational after July 28, keeping the mill’s 208 workers employed. He has appointed Rosaire Pelletier, a former executive with Fraser Pulp and Paper Group, to head a team to work with the mill on energy alternatives.

One possibility is a biomass boiler, although it would not be operational immediately so the mill would have to deal with high oil costs for some time.

It was also reported on Thursday that home heating oil prices have doubled since last year, causing both oil dealers and homeowners to fret about costs. While some homeowners, like the Millinocket mill, will look for alternatives, many can’t afford the cost of a new heating system. Ditto for commuters facing record high gasoline prices. A more fuel-efficient car would be nice, but many can’t afford to buy a new vehicle, so they’ll drive less, if possible.

There is a strong push from the Baldacci administration for the development of alternative energy sources, such as wind power and ethanol from wood waste. The Public Utilities Commission is looking at alternative arrangements to the regional power grid that has resulted in high electricity prices compared to the rest of the country. Utility companies have proposed new power lines to transmit electricity to and through Maine.

On the federal level, an investigation of oil price manipulation, through commodities trading, is under way and vehicle fuel economy standards will soon see a small increase, tiny steps after years of rejecting mandates for more renewable energy and subsidizing the oil and gas industry.

When a paper mill can no longer afford to function because of high fuel costs and families face $1,000 bills to fill their heating oil tanks, alternative energy sources are no longer theoretical, they are needed now.