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Show 'ii n m' ijn ii n;:giiiMM"iiii'i'Biiiiiiiai Miiirritfftt Times Newspaper Wednesday, August 23, 2000 Page 12 Company At a time or rapidly rising natural gas prices across the nation, Questar is softening the blow for its customers and saving sav-ing them millions of dollars due to a unique advantage: company-owned reserves. During the summer, natural gas prices increased significantly. signifi-cantly. Utilities in surrounding states, which purchase all their gas supplies on the open market, mar-ket, promptly filed for rate increases in-creases of 25 to 50 percent. Some experts predict higher gas prices will persist through this winter. However, Questar Gas is one of the few utilities in the nation with significant company-owned gas supplies, which currently costs significantly less than gas purchased on the open market. The gas is developed by Questar affiliate Wexpro Co. under an agreement approved by Utah and Wyoming regulators. "These supplies are delivered to the upstream up-stream pipeline at a cost of less than $2 per decatherm as compared com-pared to market prices as high as $4.20 per decatherm," said Alan Allred, Questar Gas's manager man-ager of gas supply. This company-owned production represents repre-sents about 50 percent of the company's total gas supply and is delivered to customers at "cost of service," which means the costs of producing and transporting the gas only. "While we are in no way immune im-mune to higher prices, we have a unique advantage - company-owned company-owned gas - that buffers the impact im-pact on the company and our customers," Allred said. In a move that saved customers about $4 million during the summer sum-mer months, Questar produced higher than normal volumes from its company-owned supplies, sup-plies, when gas prices unexpectedly unexpect-edly reached all-time highs. Questar Gas typically seeks the Public Service Commission's approval each summer to adjust its rates to reflect changes in gas costs. However, this year the decision to use higher-than-nor-mal levels of company-owned supplies rather than purchase high-cost gas on the open-market prevented any rate increases related to gas costs and postponed post-poned the need to adjust rates. If high prices persist Questar Gas customers will see higher prices, but this company-owned gas will ensure that prices are not as high as in other areas. About half of a customer's bill reflects the cost of the gas itself. Gas costs are passed through to customers on a dollar-for-dollar basis through periodic pur-chased-gas adjustment filings. The U.S. Energy Information Administration's national forecast fore-cast for the fall and winter stated: "Expected rises in gas demand, a relatively slow storage stor-age buildup, strong crude oil prices and fears of a repeat of last summer's heat wave in key gas-consuming areas will pave the way for unprecedented natural natu-ral gas prices for the rest of the year. We are predicting that natural gas prices will increase by ')()" this summer (April-September) compared to last summer, sum-mer, and by 60 this winter (October-March) compared to last winter. The reason for the higher price is the demand for natural gas is growing primarily due to its environmental en-vironmental friendliness. Ronald J. Barone, a Paine Webber security analyst, said electricity generation has emerged as a major new growth market for gas. "Natural gas is benefitting from increased electricity elec-tricity consumption driven by today's robust economy. Americans Ameri-cans are building bigger homes, Timpanogos Cave reopens As of Monday, Aug. 7, Timpanogos Cave National Monument has reopened. The monument was closed for a week due to the Oak Hill fire that started near Alpine on Sunday, Sun-day, July 30. Part of Highway 92 through American Fork Canyon Can-yon was also closed due to fire activity in the area. All of Timpanogos Cave's regularly scheduled activities will resume, including cave tours, weekend evening programs and Saturday Jr. Ranger programs. . - owned supplies help Questar stabilize rates selecting natural gas as a fuel choice and rare utilizing air-conditioning through the summer. Virtually all new power-generation capacity will be fired by Craig Forsyth, Chairman & f ' Mi. " j JLI :J Bob Aland, Executive Vice I"" "f - 5Jt c j J 'ii ii ill t mm Jacob Forsyth, Vice President S Diane Smith, Cashier natural gas," he said. Nick Rose, Questar Gas president presi-dent and CEO, said: "Higher prices were inevitable because of the growing popularity of natu r - CEO Randy Hoyt, President 1 President Edward Sanches, Vice President I. Michelle Mallinson, Vice President In Orem: 1376 North Suit (801) H2 9006 In Pteasart Grove: 47$ E StJW R(Md. (01) 796 3S60 V 7H )' I ,1; n i LiiM.iyinB ii m ral gas as a reliable, economical, economi-cal, clean energy source. The rapid increase in demand for electricity has created an equally rapid increase in demand of ran V! i : if Meet bank officers that are as approachable as they are capable. There are lots of reasons why customers hank with us at Western Community Bank. The reason we hear most often is simply, "I really like the people.'" From account personnel, to tellers, to officers each is neighborly and helpful whether you're closing a substantial commercial loan or helping your eight-year old open her first savings account. Free checking. Fret; name remembering. Free handshaking and smiling. T T Big environmentally friendly fuel to generate it No one expected the rapid price increases to almost twice what they were a year ago. In our service area, we see no f w i T vvrs r I i r Community DariK bank abilities. Small bank amenities www.westerncommunitybank.com indications of shortages or problems prob-lems with meeting demand, and we expect gas to still be less expensive ex-pensive that available alternatives, alterna-tives, including electricity." I j 'A V1 Mmbtr FDfC (poo . '- . . V |
