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Questar requests increasing rates 45%

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  • Questar requests increasing rates 45%

    Questar has submitted a request to the Utah Public Services Commission of a rate increase of 45%! This is a huge increase, considering that they just had a rate decrease less than a year ago. They will have to show that their own costs have increased by that much since the decrease in rates - even with the increased cost of energy today, is this possible?

    I know people outside of Utah probably don't give us much sympathy since we have been paying so little for the last four years, but this is a burden for most people in this state that are already paying higher petroleum fuel and electricity. Increasing home heating cost this next winter by 45% will put a large burden on everyone.

  • #2
    Re: Questar requests increasing rates 45%

    Many of us have been expecting this. Demand around the country for natural gas for many uses is increasing due to increased cost and availability of other fuel sources. Additionally, within the free market we should expect to see investors grasping for greater control (which equals potential profits alongside of political clout) over every alternative energy innovation and fuel. Hang on for a ride that will simply get wilder in the next few years.

    LOLLL, you should see the larger socio-political diatribe I cut from this entry before posting to spare you my rantings.


    • #3
      Re: Questar requests increasing rates 45%

      We might as well get used to higher energy costs, and request for tariff rate increases. We really tend to forget just how good we have it here in Utah.

      Questar's transportation fuel rates are so low that they can't possibly sustain the operation and maintenance of the public refueling infrastrure over the long haul. And O & M funds don't include money for future NGV refueling capacity expansion or future technologies like Hythane or H2.

      FACT: Our residential natural gas rates are among the lowest in the nation (lowest in the Continental/Lower 48 States, last time I bothered to check)

      You'll also see the commodity price of Naturtal Gas will no doubt dramatically increase as there is more pressure to produce "cleaner" electrical power. Not unlike the Food vs Fuel debacle with Ethanol.

      So hang on -- it's gonna be a wild ride.


      • #4
        Re: Questar requests increasing rates 45%

        I know its anybodys guess but is it safe to assume cng in utah will be up over $1.00 a gal (not that im complaining by any means) by the end of the year with this new proposal?


        • #5
          Future Costs of CNG Fuel in Utah?

          What we DO know:

          1. Due to changes in the legislation that were signed by Gov Huntsman, just yesterday, we will see about an $.08 per gge increase at the pump to collect Utah (UDOT) State road tax on NGV fuel. (This was one of the compromises reached in an effort to retain the Used Clean Fuel Vehicle Tax incentives.)

          2. Utah's PSC will have to approve any tariff changes to NGV pump rates.

          3. Utah State Fleet Agencies are already paying $1.00 per gge at their pumps.

          Beyond that, I'd say you personal crystal ball is as good as the next guy's.
          $1.00 to $1.50 in Utah for NGV fuel in the "not too distant" future is a pretty safe bet. But when you look at the historical trending of gasoline vs CNG the track record is impressive.

          I'd like to see a survey of the Utah CNGCHAT crowd, to understand better how they feel about the economics of energy.


          • #6
            Re: Questar requests increasing rates 45%

            The great thing about the monopoly is that they have also, in the past, asked for rate reductions. Further, the PSC rarely gives them all they ask for...

            So, while I agree the trend is up, as long as the CNG is legally connected to the rate home owners and businesses pay for heating natural gas we have a huge constituency to keep rates low.

            Has anyone read the readers submissions and articles from the SL Trib?

            Thank you PSC.

            "UTAH, it's a pretty great State." Trademarked and stolen from the Utah Travel Council.


            • #7
              Re: Questar requests increasing rates 45%

              My thought is its still cheaper then Gas, but if it does go up I am going to have a cold house this winter and I don't think I will be alone


              • #8
                Re: Questar requests increasing rates 45%

                The Days of cheap energy are over.

                That is a fact. For everyone who voted for **** (you know who you are.) you get what you voted for.

                Cheney and Bush with Big (I mean Big Big) oil.
                Bush eviscerating our Energy Policy and Energy Department.
                Bush, big oil (fertilizer), chemical companies, and Agro conglomerates (eg. ADM, Monsanto) and the Demos and Repubs from the farm belt pushing ethanol .

                The crappy economy, very low interest rates, out-of-control stock market...

                And don't forget about that nasty three letter word, W**.

                Wake up people!

                One of the main reasons natural gas is going up is because oil is skyrocketing.


                • #9
                  Re: Questar requests increasing rates 45%

                  As I said before oil has enjoyed a 30% increase while NG has enjoyed a 60% increase.
                  My next question is for home refueling? At what point is it worth it to fuel up at home, and put the investment into that. If prices do go up to $1.50 in Utah. Which they will.
                  As said before it is going to get Wild for everyone, no matter what you do.


                  • #10
                    Re: Questar requests increasing rates 45%

                    Folks, please discuss politics in the Lounge and keep this on topic of Questar's rate increase, thanks.


                    • #11
                      Re: Questar requests increasing rates 45%

                      On the one hand, my truck isn't even in my driveway yet. And I really would like to reap some of the benefits of $.63 ng. On the other hand, I'm not quite a rookie to this game, and I would love to see some regular upkeep and (modest) improvements made to our local ng infastructure. I know that these wishes of mine don't come cheap, so I would be willing to help subsidize it as long as the subsidies stay modest and don't spiral out of control.


                      • #12
                        Re: Questar requests increasing rates 45%

                        I was thinking about this the other day, even if it tripled in price we'd be paying $1.89 a gallon! Oh no!!! It's not that bad. I would gladly pay that much if it means better maintenance on the stations. As much as I like paying .63 a gallon the stations need some work, and Questar can't do much with the little bit their making on this.
                        You can do anything except light a paper match, on a marshmellow, underwater!

                        R.I.P. Taylor and Chris


                        • #13
                          Re: Questar requests increasing rates 45%

                          even at $1.50 would you really stop driving an NGV? We would be lucking to ever see $3/gallon gasoline again. I would be happy and many others too, to pay anything under $2/gge. I think I get a bargain at Washington Schools for $2.25 when CE is $2.69
                          SAVE TIME. SAVE MONEY. SAVE THE ENVIRONMENT.

                          2003 Hummer H2 bi-fuel
                          2000 GMC Yukon XL bi-fuel
                          1999 International 4700 dual-fuel
                          2007 Chevy Avalanche bi-fuel

                          FMQ2-36 Fuelmaker w/ 24 GGE cascade


                          • #14

                            Without sounding too bold I think I have a solution for the Questar issue. We as private investors can form a cooperative and purchase the stations when/if they go on the market. The LLC ceo, John Mitton, and his board could serve to give direction and carefully manage the cooperative so as to be viable, yet protect the end users from profit mongering. What do you think? I am not sure what the shares would cost, but I am all in. We may be better off with something like this depending on how things go with Questar.


                            • #15
                              Re: Questar requests increasing rates 45%

                              Questar was interviewed today by Doug Wrght and they said by Aug 2008 cng would be $ 1.80 gge.