OCR Text |
Show Mountain Fuel Asks for Rate Increase An increase in the royalty payment to the U.S. Government Gover-nment for natural gas produced on federal lands and another federal government-ordered government-ordered increase in the price of gas at the wellhead have triggered a $1.3 million rate increase application by Mountain Fuel Supply Company Com-pany with the Utah Public Service Commission. None of the $1.3 million will remain with Mountain Fuel. Most of the increase, $823,380 will go to the United Sttes Geologic Survey in the form of higher royalty payments for natural gas produced by Mountain Fuel on federal lands. In July of 1976 the Federal Power Commission greatly incrased the regulated price of natural gas at the wellhead. In the same order the FPC ruled that the regulated price would increase in-crease one cent per thousand cubic foot each quarter. The quarterly escalation effective July 1, 1977, accounts for $260,554 of the increase. The remaining amount of the increase in-crease is for miscellaneous gathering charges. The company's application asks that the increase be made effective July 1, 1977 when the government increases in-creases become effective. |