OCR Text |
Show Public Service Commission Approves Gas Price Raise The Utah Public Service Commission today approved a request by Mountain Fuel Supply Company to raise its rates for natural gas. The increased in-creased rates result from recent actions taken by the United States and the Canadian governments. The Commission allowed an immediate increase of $22,210,594 made necessary by a recent order by the Federal Power Commission which substantially increased the price of natural gas found since January 1, 1973. The Commission stated that the increases granted are equal to the increases in Mountain Fuel's costs, and are "attributable "at-tributable solely to new and higher prices charged by suppliers ... and higher royalty payments to landowners, public and private." It also points out, "Recovery of such additional natural gas costs will not enlarge or add to the rate of return found to be just and reasonable and authorized by this Commission ... nor will it enhance Applicant's (Mountain Fuel's) net profits or distributable net income by way of dividends to its shareholders." The Commission said that if Mountain Fuel fails or refuses to pay the cost increases "it suffers the possibility of losing natural gas supplies, which loss would not be in the public interest." in-terest." In its application Mountain Fuel pointed out that the higher costs of purchased natural gas, which the company must pay, became effective July 27, 1976, the date the order was issued. Mountain Fuel, therefore, has been incurring the higher costs since that time, but those higher costs were not reflected in its rates until today. The company also requested permission per-mission to add a one-time surcharge during the month of October to recover the amount lost during this period. In today's order, the PSC said the company should be prepared to discuss the mater of the surcharge at a hearing scheduled for September 29. The law requires such a hearing be held within 30 days of the issuance of the order. In its application, Mountain Fuel asked that the increase be spread equally between all. classes of customers by adding a uniform increase per thousand cubic feet of gas used. However, Mountain Fuel warned that such a spread might cause some large in-terruptible in-terruptible customers to switch to other fuels, which would result in additional increases to residential customes. Today the Commission said they share Mountain Fuel's concern. The Commission pointed out how sales to industrial customers help all other customers. "Sales of natural gas by Mountain Fuel to in-dus in-dus trial interruptible customers are made primarily during warmer low residentail demand periods. Thus, the inclusion of these industrial customers as part of Mountain Fuel's rate system permits applicat (Mountain Fuel) to balance its load and spread the fixed costs of service over a larger volume of gas sales, resulting in lower rates to all customers," the Commission said. B. Z. Kastler, Mountain Fuel president, said this points out that use of gas by industrial customers is and has for some time, been beneficial to other customers, in spite of contrary charges by some individuals. "We are very concerned about this matter, and the Commission has asked us to be prepared to discuss ways to keep the industrial customers usirtg gas at the September 29 hearing. We are looking at various alternatives to present |