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SALT LAKE CITY — Utah natural gas customers can expect to pay the same as last year to heat their homes this winter.
The president and chief executive officer of the Questar Corp. said rates for natural gas would likely be the same during the winter of 2010-2011 as they were last winter. Questar Corp. is the parent of Questar Gas Co. — the largest natural gas utility in the state.
"(It's a) good outlook as far as our customers are concerned (with) low price ... and being able to maintain that throughout the winter," Ron Jibson told the Deseret News. In fact, prices could decrease slightly depending on weather and the progress of the economic recovery, he added.
Jibson said the current supply of available natural gas for heat is a bit ahead of the 5-year average as production and imports of liquefied natural gas are up.
He said demand could be affected by weather — as temperatures are projected to be slightly warmer this winter. In addition, natural gas for electricity generation and industrial use is on the rise, he said.
Utah residential natural gas rates are among the lowest in the nation.
According to data from Questar, the typical household will pay approximately $702 for natural gas in 2010. In 2006, the average Utah household paid about $720 annually, $722 in 2007, $805 in 2008 and $660 last year.
Jibson attributed the variances over the years to fluctuations in the commodity price for natural gas from year to year.
While rates have stabilized in recent years — keeping prices relatively low — the situation could change if an unforeseen event occurs, he said.
Jibson said Questar has spent the last several years replacing its underground transmission pipeline to improve the integrity of its natural gas infrastructure. The long-term project will cost the company about $45 million annually or about $3 to $4 a year per customer.
Questar Gas Co. serves about 900,000 customers in Utah, Wyoming and Idaho.
E-mail: jlee@desnews.com
