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John Daley ReportingThere’s been a major development tonight affecting virtually every Utah consumer, with high natural gas prices. Governor Jon Huntsman has called for federal investigations into whether "market manipulation" is taking place.
Natural gas heats most Utah homes and provides power for many Utah businesses. As your heating bill shows, the price for natural gas has shot up and the governor wants the federal government to look into it.
At the Bartlett home in Magna they're turning the thermostat down because their home heating bill has gone up sharply. The retirees, on fixed income, wonder why.
Joyce Bartlett, Questar Customer: "I think it should be looked into. I don't know why things should just go sky high and nobody say anything, and just take what they hand us."
The state has been deluged with complaints, and late today the governor made a bold move, calling on the Federal Energy Regulatory Commission, the Commodities Futures Trading Commission, and the U.S. Congress to initiate investigations into whether market manipulation of natural gas prices is occurring.
Gulf Coast hurricanes and cold weather could be affecting the natural gas market, but the Governor's office says the U.S. Energy Information Administration indicates there are adequate supplies for this winter
Michael Mower, Governor's Spokesman: "So we're saying, if there's enough natural gas out there, why have prices doubled in the last year? The governor is concerned that some market manipulation might be taking place that's led to the steep rise in the prices consumers are paying for natural gas."
An analyst with a Salt Lake-based energy consulting firm tells us there are structural reasons for higher prices. Most major natural gas fields in the US are in decline, and as a relatively clean-burning fuel, it's been in great demand in industry and electric-power generation.
Still, some have questions about gas price speculation, perhaps by hedge funds, for example.
Paul Barber, Senior Analyst, Energy Strategies: "I think what the governor is, and other people are concerned about, is that on top of those structural reasons why the commodity is going up, is there undue speculation that is pushing it higher than it should be? Certainly if that's the case, steps should be taken to correct that."
The Governor's office is quick to point out they are not pointing the finger at any Utah business.
Questar issued this statement: “Unfortunately, the Governor has received bad advice. Yes, natural gas prices spiked after the hurricanes, but prices have since fallen 40% as those facilities have been restored and Americans conserve. We understand the public's frustration with high energy prices, but markets are working, natural gas prices are coming down, and thus rates in Utah - already the lowest in the country - will also come down.
