18 1983 10, Isis MAIL 1 Mountain Fuel customers are paying more for gas than ever before. Your rates for natural gas are still among the lowest in the nation. Heres why: Higher gas costs. of our about Heres why: Our supplies. costs are a national We purchase gas from outside suppliers in order to serve our area. The cost of this gas has risen 148 since 1978 because of federal government pricing policies and the greater expense of two-third- s fast-growin- - g new supplies. We producing hard-to-ge- t either pay the increased price or give up the supply. Although rising gas phenomenon, we pay significantly less than most other gas utilities because our supplies include lower-cos- t gas from our own wells and pipelines. Weve avoided unwise new purchase contracts for higher-pricegas that are at the root of the much larger increases in natural gas prices projected for other parts of the j d , country. Higher taxes. Federal, state and local taxes which we and our suppliers pay have risen some 2800 since 1 940, more than five times the increase in natural gas prices during the same period. That rising tax burden adds significantly to the price you pay for natural gas. Direct taxes paid by of your Mountain Fuel account for 14 bill, and residential customers pay a 2 sales tax. In addition, many communities assess a ..franchise tax, which can add another 6 to the cost of natural gas service. And our suppliers pay taxes which are passed on to us in the price of gas we buy which further increases the portion of your bill which goes for taxes. Good business practices. Were making every reasonable effort to hold the line on business expenses. We have held the size of our work force rela- , Colder weather. Below-norma- t even though the number of customers and, consequently, the demand for natural gas service are rising. And we continually review all of the costs of providing service to you to make sure they are in line with good business practices. f An efficient delivery system. l temperatures in October, November arid December caused the typical Utah custoto inand bills mers consumption crease by more than 1 5 over normal. i tively constant ' Since 1929, weve built a natural gas delivery system that is second to none in reducing waste and ensuring that you receive the most from your energy dollar. Its reliability is unmatched in the over 50 years of our existence, Utah customers have never experienced a major supply interruption. Other factors. Inflation has been a significant factor in the general rate increases we have had to ask for over the past few years. Our industrial load has declined. Industrial customers historically have helped to keep residential gas costs lower because they pick up a large share of the fixed costs of operating and maintaining our distribution system. But because of increased competition from other fuels, economic conditions and government intervention, we have lost a significant amount of our industrial load. dont expect you to lllzc paying higher bills for natural goo or anything else But you have a right to know why your natural gas service costs more and what were doing to keep your rates fain Thats why the shareholders of Mountain Fuel have paid for this message . IVc i i i i MOUNTAIN FUEL Supply Company 1 i i I l r "