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Show t I As a public utility, we have an obligation to the As a customer of Mountain Fuel Supply, you have public, our customers, our employees and our stock- the right to know the facts behind these complicated holders to answer their questions and keep them . matters. In this current series of messages (which has informed. been paid for by our stockholders), we have reviewed why natural gas rates have escalated, what we're doing To rely solely on the news media to disseminate to keep our rates in line, how our rates compare with utility information would be inadequate. The news those paid in other cities, how the price of natural gas media do not have the time or the space to devote to compares with the price for other forms of energy, many of the complex issues with which we are fre- what percentage of your income goes to pay for natural quently involved. Misunderstandings, distortions and gas service, and how we utilize the income we receive omissions are often the result. to continue serving you. How do MFS rates compare with those in other cities? What amount of each dollar goes for natural gas? Annual Residential Gas Bill (Dollars) Expenditures of Median Family Income Oklahoma Citv f - Housing Transportation Medical Mountain Enter- Salt Lake City 1 537-44 oifN 1 A& Care oFue! ta.nment ; Butte "vv.v::--: Wv?ft Di LHSr Supply -) c Chicago :xxm3&fi4X07 - . V Q V ; Las Vegas mmm&ywZ-WP&& 679.60 v Albuquerque -y-yf: 686. 14 Taxes ! Great Falls MMM": 7 16.24 orzA Food and Phoenix mzmmtmzzzzffi 719.96 ,r .D Beverage Houston :::y:::::::- 8 1 0.04 JU. I - A A Apparel A, Denver 825.79 l4V & Upkeep ther ! Chevenne : 827.86 RSll I A Goods . : Miiwa :;:;x;:;?r P' ' JV' ; . 6 200 400 600 . 800 l ,000 1. 200 Annual Residential Gas Bill (Dollars) - 4th Quarter. 1 982 , ' x , - Based on Rates in Effect in Cities Shown Applied to Usage of Typical Customer on WS System (l 400 Therms) How does the price of natural gas compare with the price of other fuels? Energy Cost Comparison .. Coal Mwum-ux:2 Q.325 ; - -.- Natural Gas -.TTiiii; a m 0.384 2 Fuel Oil WW-WW 0.733 : Propane ", Firewood yy-y y-y : yyyy. I .034 . ; Electricity 1. 1 83 i i I I i ' i i 0.0 0.2 0.4 0.6 0.8 l.O 1.2 1.4 Your Natural Gas Payment: Dollars Per Therm r 4th Quarter, i 982 Where Does It Go? What of median family income goes for natural gas? Gas Costs Annual Natural Gas Bill Percent of Median Family Income IZCL - or OPeratin9 ' Oklahoma City ;mfmXtmwi 2.7 Mj- "lirP Salt Lake City fejYX : A,bcUheUyenne : : Wages and Salaries (PS Portland li'i 4.0 ft I Si?mfW : Seattle -y l f : ;; , Dividends 2 . 8 ; ' t ; ZZIZ- I I I I Reinvestment 2.6 . ' v ',. ? 3'?:, 4 5 6 Annual natural gas bill percent of median family income : 3rd Quarter. 1 982 (most re ent comparisons available) Source: 1 980 Census ; 'Has warmer climate than Salt Lake Ci'n These are questions you, our customers, are ask- That means being efficient in everything we do, including, includ-ing, and we have a responsibility to answer them for ing the manner in which we get information to you, you. In addition, we have an obligation to communicate our customers. ; valuable safety messages to you, to show you ways to Our business advertising amounts to only about : conserve and keep your bills reasonable, to discuss $1.20 per year per customer, or about 10C a month our service programs and to communicate various We couldn't send you even one letter for that amount ; other messages of importance to you. nor could we answer your quest.ons and keep you ! Some of our advertising, such as this present series, informed and current on our programs in any other : is paid for 1 00 by our shareholders from their earn- more cost-efficient way. i ings. It is not included in the rates you pay. Other mes- We believe you have a right to have your ques- sages are charged as an essential part of doing business, tions about Mountain Fuel answered completely and the same way every other business in America accounts accurately. In this series of messages we have tried to for advertising. do that - and to answer the questions we : are most Like every other business, we must also compete frequently asked. We hope it has been helpful. And for your business. While we are the only gas company we hope it has shown you that our rates are fair and in town, we are not the only energy company. And reasonable, and that you receive a good value for he the way we compete is to keep our prices as reason- price you pay. Thats why the shareholders of the able as possible and well below our competitors. company have paid for this senes. i MOUNTAIN FUEL ' Supply Company i i ' " i ' i |