OCR Text |
Show Mountain Fuel Wrong. Mountain Fuel's regulated utility is authorized to charge rates for natural is guaranteed 9as service at certain levels by the Utah and Wyoming public service commis- - 3 Drofit sions. Those levels are based upon what the commission determines after lengthy hearings the utility earnings should be in order to render adequate and reasonable service as well as to successfully attract investor funds. But there is no guarantee the company will earn the authorized profit level. It must perform well and operate efficiently, like any other business. Mountain Fuel must compete with other investment opportunities, such as money market funds, and compensate investors for the risk involved in providing their money to a utility. Investor capital is critical to help finance the significant capital expenditures the company must make each year to continue providing quality natural gas service. In 1 982, the company for the first time in several years came close to earning what it was authorized, primarily due to higher gas sales caused by colder-than-norm- al weather. But in 1981 and over the past decade, earnings were well under the author-ized level and significantly below what our investors could have received through other investments. This was caused by warmer-than-norma- l temperatures, unex-pectedly high inflation and costly delays in receiving rate relief. Mountain Fuel Right. We sell a product and a service and we must earn a profit in order to is a private stay 'n business. However, since the public determined many years ago it would business e uneconom'ca' ar,d inefficient to have more than one natural gas system in . .. cnn our streets ar,d roads, we are much more heavily regulated than other private ? businesses with whom we compete for your heatinq business. of government. Mountain Fuel Wrong. While we are the only company in our area selling natural gas, we are is a monopolv not e on' comPanv selling energy. We have many competitors: coal, elec- - " ' and has tricity, wood, kerosene, oil, propane, butane and others. no Competition. Think about it. If those energies were a better value, wouldn't you switch? About 95 percent of the people in our service area use natural gas for heating. The reason? They know that natural gas is the best energy buy on the market. We are and know we must remain competitive to keep it that way. Mountain Fuel Wrong. The Public Service Commission regulates the price our customers are Can Charqe charged for natural gas service. Under Utah and federal law, it must determine whatever wat is ''ust an reasonab'e" anc' in tne public interest to protect both con- - .. . r sumers and the financial soundness of the company. A financially sound utility will mean lower rates for its customers. natural gas. The Public Wrong. Even before the commission listens to pro-and-co- n testimony, rate re- - Service quests are thoroughly examined by auditors from the Utah State Division of Commission Public Utilities. Then there is a formal hearing process where the commission . receives testimony from the Division of Public Utilities, consumer agencies and auiomauca ly affected groups. Only then are rates established, reflecting the "just and reason- - grants rate a51e- - standard. increases requested by Mountain Fuel. These are statements which frequently are made about Mountain Fuel Supply. Our shareholders are anxious for you to have correct information so you can judge whether such statements are right or wrong. That's why they paid for this message. I MOUNTAIN FUEL Supply Company |