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Show ,, 1 One-Time Surcharge Is Coming on Gas Bills Utah customers of Utah Gas Service will discover a special one-time surcharge on their October gas bills, company President Charles Shinn told the Times-Independent over the telephone Tue? Jay. Tl e surcharge was authorized Oct. 14 by the Utah Public Service Commission follow ing a hearing on the matter Oct. 1. Uta!' Gas Service estimates that the y -dage residential users in Moab will receive a surcharge of about $5.50. The surcharge to commercial users will be . related to gas useage. Mr. Shinn explained that July 27, 1976, the Federal Power Commission issued an opinion which had the net effect of almost doubling Utah Gas Service's gas purchase prices from the Altonah area of Duchesne County. On Aug. 24 the company submitted an application to the Public Service Commission to increase rates to reflect this increase in gas prices, and this was approved effective Sept. 10. However, this left the period of July 27 to Sept. 10 when Utah Gas Service accrued a total of about $ 1 95,000 in losses because of the gross differential between what the company was forced to pay for natural gas from its suppliers, and the rate it was allowed to charge customers for that gas. Shinn explained that of that amount about $85,000 is attributable to gas which Utah Gas Service is reselling to Northwest Pipeline Corporation, and the remaining $110,000 is attributable to customers in the State of Utah. In the PSC hearing Oct. 1, Utah Gas asked that it be allowed to collect the one-time surcharge from Utah customers who were on the line during the month of August to recover the $110,000. The order allowing this was issued Oct. 14. Out of the $110,00 about $76,000 will be charged to industrial users such as Rio Algom, Atlas Minerals, TexasGulf, etc., said Shinn. The remaining $34,000 will be charged to residential and commercial customers in Moab, Monticello and Vernal areas. However, the PSC order also stipulated that if for any reason- the Federal Power Commission, which authorized the increase initially, subsequently reduces the rates they have established, Utah Gas Service, in turn, will refund the difference between the amount collected and the amount subsequently allowed to be collected, stated Shinn. He noted that the rate of this surcharge was not determined until Oct. 21, at w hich time the PSC was notified of it, and as a result a few of the bills in the Moab area were mailed out without the surcharge bein shown. Local Utah Gas Service Manager Lou Smith is in the process of mailing corrected bills to those few customers, including the surcharge. Mr. Shinn emphasized "there is no profit flowing to Utah Gas Service as a result of this rate increase and the surcharge." This money is a direct flow-through flow-through from customers to Utah Gas Service's suppliers of gas. he concluded. |