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Is there an end to high natural gas prices for Questar customers? By
Jami Lundahl
Questar Gas company has announced that because of increasing natural gas prices in Utah, it will increase its rates by as much as 30 percent. This is a number that has a lot of customers asking why. The answer to that question is the rising cost of natural gas around the country. The cost of natural gas in Utah has increased by $167 million for the year 2001. One reason that the cost of gas has increased so dramatically this year is because of the extremely cold winter that Utah has had. Another reason is the booming economy that the country, particularly the West, has seen over the past 10 years. Supply and demand play a heavy role in the price of gas. Experts are saying that the relatively high price of natural gas will persist through 2001 and 2002. This is not something a lot of customers want to hear. And with the economy slowing down, this comes at a very bad time. The effect this rate increase could have on families is substantial. The U.S. Department of Energy has estimated that natural gas prices will average 50 percent more than last year. Utah customers are seeing a slightly smaller rate increases compared with the rest of the country Questar is quick to point out that the typical customer's bill will only increase by $17 to $20 a month. Questar believes it has been providing natural gas for Utah and Wyoming at an extremely low rate for many years. If you compare rates around the country, Questar does come out on top. The typical monthly bill for a family in Salt Lake City is $195.56. Compare this to the typical bill for a family in Omaha, Neb., which can reach the price of $388.78. Questar Gas offers a savings of almost $200. Only two states had better gas prices than what Questar provides here in Utah: Butte, Mont., with an average monthly bill of $167.80, and Las Vegas, Nev., with a monthly bill of $185.99. The reason Questar has been able to keep rates down in the past is the mild winter weather that Utah and Wyoming have had over the past five or six years. This provides a savings for Questar that they pass on to their customers. A significant factor behind the slightly smaller increase in Utah is that Questar is one of the few utilities in the nation with significant company-owned gas supplies, which means the company does not have to purchase as much of its gas in the open market. These gas supplies are currently half the price of what it costs to purchase gas. Questar has worked to insure that these company-owned wells are preserved for Utah ratepayers. Even though Questar has been doing all they can to get the word out about the savings they offer, some customer*s are still upset with its increases. This latest rate hike and two others earlier this year mean the annual cost to heat a typical Utah home will jump from about $600 in January 1999 to about $905 in 2001. This is a substantial difference. Some may be wondering if Questar is making any money off of this rate increase. The company says the answer is no. Questar makes no money when it changes the price of natural gas that its customers must pay. Utah consumers get their natural gas at cost. Questar makes its money by charging customers for delivering the natural gas to their homes. So the question is, what can consumers do to keep their gas bill down during the cold winter months? Questar has offered some tips. Reducing air leaks in doors and windows can cut back 10 percent of costs. Leaving the thermostat between 65-70 degrees and turning the water heater down to 120 degrees can also cut back on costs. Cleaning filters in furnace at least once a month helps, or Questar offers a bill payment program that averages your bills over the period of one year so your bill is the same price every month. These tips can help keep your gas bill relatively low through the cold winter.
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