NTUA: Expect higher
natural gas prices this winter

Copyright © 2008
Gallup Independent
By Diné Bureau

FORT DEFIANCE — Navajo Tribal Utility Authority is advising its natural gas customers to expect a 25 to 30 percent increase in natural gas prices this winter. That means the average bill could increase $25 or more, depending on usage.

Energy forecasters nationwide are predicting prices for wholesale natural gas will increase 40 percent and that increase will affect natural gas consumers throughout the country.

“We are sending this warning early so that customers can prepare,” said NTUA General Manager Walter Haase. “The potential for higher natural gas prices is inevitable. Judging from the gasoline prices we saw this summer, it is easy to see how natural gas will follow the same path.”

NTUA said the anticipated higher natural gas prices are not a NTUA rate increase.

“Our customers pay for natural gas costs at the same price we pay wholesale suppliers. It is equal dollar-for-dollar,”

Haase said. “If prices should fall, we pass those savings on to customers as well, dollar for dollar. There is no profit for NTUA.”

When the outside world increases wholesale gas prices, NTUA adjusts its prices through what’s known as a PGA, or purchased gas adjustment. The PGA rate is a calculation that changes frequently, increasing or decreasing depending on the current market rate for wholesale natural gas that NTUA purchases.

NTUA purchases natural gas wholesale and delivers it to 7,000 residential, commercial and industrial customers within the Navajo Nation. NTUA natural gas comes from the San Juan Basin production area and is injected in the El Paso Natural Gas and Transwestern pipelines every day, and transported throughout the Navajo Nation through a network of pipes owned and operated by NTUA.

To address price concerns, NTUA suggests several energy conservation measures, including checking for inflows of cold air and leakage of warm air, particularly around windows and doors; inspecting homes and sealing any cracks or openings around windows, doors, fireplaces, pipes, and electrical outlets; and purchasing window covering kits.
Other recommendations include servicing the furnace or heating unit to ensure it is working safely and efficiently, replacing furnace filters regularly, setting the thermostat at 68 degrees and water heaters at 120 degrees.

“Considering and applying these basic winterizing measures and conservation tips can make a big difference on the utility bill,” Haase said. “That’s why we’re encouraging customers to plan ahead and be prepared when the cold weather arrives.”