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Questar raising rates on April 1st

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  • Questar raising rates on April 1st

    This morning we noticed a new sign at the Orem station saying that CNG will be going up 27 cents on April 1st. It also noted that there is still a 24 cent credit in the price and that the rates will fluctuate in the future.

    I wish I could say it's just an April fools joke. . .

    Are the signs posted at other stations?
    www.CNGUtah.com

  • #2
    Re: Questar raising rates on April 1st

    Nothing last night in West Jordan.

    Is this basically Questar actually using the federal tax credit to help pay for the infrastructure upgrades we need? If so, great. But if this is some PSC crap again I'm going to be very disappointed.

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    • #3
      Re: Questar raising rates on April 1st

      There is a sign up at Clearfield noting the price increase on April 1st.

      (The sign claims the price increase is to overcome the cost of compression. Also that the CNG is currently being dispensed at a loss.)
      Last edited by Harpoon; 03-26-2009, 11:58 AM.

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      • #4
        Re: Questar raising rates on April 1st

        There is also a sign up at Flying J in Springville saying that the price is going up April 1.

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        • #5
          Re: Questar raising rates on April 1st

          Same sign posted in Bountiful.

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          • #6
            Re: Questar raising rates on April 1st

            This is a result of the recent Public Service Commission (PSC) ruling to allow Questar to collect the full rate of service from customers.

            Historically, other Qustar ratepayers were in effect subsidizing CNG usage; this was put to an end by the PSC. One victory we achieved as a CNG community was the inclusion of the cheaper and less volatile Wexpro resource in CNG pricing.

            The Governor signed a bill yesterday that gives the PSC the ability to price CNG below the full cost of service. This, in essence, allows the PSC to maintain low prices at the pump.

            http://cngchat.com/forum/showthread.php?t=4535
            http://le.utah.gov/~2009/bills/hbillint/hb0392.htm
            http://www.le.state.ut.us/~2009/stat...sta/HB0392.htm

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            • #7
              Re: Questar raising rates on April 1st

              It is unrelated to the Federal net 32 cent tax credit. Questar is still passing this through.

              The increase cuts the Questar subsidy in half. It is currently about 53 cents / gge hence the increase of about 27 cents on April 1st. PSC stayed its ruling for increasing to full cost of service, but kept the Questar original petition to go halfway to full cost for now until Docket 08-057-21 can run its course. It is time once again to pull out the stops and focus on this new docket.

              House Bill 392 was just signed today which gives PSC the latitude to allow Questar to sell below cost of service. Perhaps when Docket 08-057-21 is all said and done we will be back to the 53 cent subsidy but for now it's going to stay at 27 cents + federal 32.

              We have a new advocate in this Docket with Utah Clean Cities Coalition who formally intervened and will provide testimony on behalf of keeping the subsidies in place so as to grow the market for alt fuels.

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              • #8
                Re: Questar raising rates on April 1st

                Ok, so i already wrote letters for the PSC issue, what now. More letters to the same people, my representative in congress??

                Thanks

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                • #9
                  Re: Questar raising rates on April 1st

                  Two bright sides to consider:

                  1) Just heard a news story that gas is up over $2 around the country again. I'm noticing most of the stations in WJ around 1.81 for regular.

                  2) Looking at the attached chart, the current spot price for nat gas, I think Questar will request another rate decrease in the future. Prices haven't been this low in years.
                  Attached Files

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                  • #10
                    Re: Questar raising rates on April 1st

                    Originally posted by CNG4RD View Post
                    Ok, so i already wrote letters for the PSC issue, what now. More letters to the same people, my representative in congress??
                    Thanks
                    Next step will be to assist the Clean Cities Coalition in its effort to represent us in Docket 08-057-21

                    I will send out an e-mail blast soon about this.

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                    • #11
                      Re: Questar raising rates on April 1st

                      Next step will be to assist the Clean Cities Coalition in its effort to represent us in Docket 08-057-21

                      I will send out an e-mail blast soon about this.
                      Looking forward to it. John, can you include in your blast info on the Technical Conference?

                      Notice of Technical Conference

                      The purpose of the technical conference is to:
                      1. commence discussion of regulatory and public policy associated with natural gas vehicles (“NGV”),
                      2. to discuss the scope of issues to be considered in this docket and
                      3. to provide a history of Questar Gas Company’s NGV Rate, NGV fuel consumption history and forecast.

                      This sounds pretty wide-ranging (especially 2) and that we'll want our unified voice heard.

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                      • #12
                        Re: Questar raising rates on April 1st

                        Questar posted a sign on a pump (I forget where) that explained they are raising the prices so that they can make a profit.

                        Plain, simple, and refreshingly honest. They ARE allowed to make a profit, after all.

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