Bismarck Tribune - North Dakota News - MDU says natural gas prices have eased

MDU says natural gas prices have eased

Sep 23, 2008 - 04:05:24 CDT

DEVILS LAKE (AP) - A spokesman for Montana-Dakota Utilities Co., says customers will pay more for natural gas than last season, but it won't be as much as projected earlier this summer.

Spokesman Mark Hanson said earlier projections were for an increase of roughly $350 per customer for the five-month period starting in November. He says the latest projection puts the increase in the $225 to $250 range.

Hanson says natural gas prices have dropped due to a number of factors, including increased production and a lack of hurricane damage to natural gas supplies. He says the weather will be the biggest factor in determining a customer's bill.

News > State

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Comments

Jeff wrote on Sep 24, 2008 7:01 AM:

" to ND Girl, you may want to consider that MDU Resources owns Williston Basin Pipeline, Knife River Coal, and Fidelity Exploration & Production Company which are supplies fo the MDU, so they control the supply and the retail outlets. They do control the process from beginning to end. "

ND GIRL wrote on Sep 23, 2008 9:40 PM:

" Montana Dakota is simply a transmission company in this case. A couple of educated folks have posted intelligent answers. Montana Dakota has absolutely no ability to gouge a customer with price increases. It is similar to a gas station in that the rate is set by the producers and the station and MDU are simply the delivery vehicles. "

customer wrote on Sep 23, 2008 7:15 PM:

" This is so nice of MDU to keep their prices lower than previously expected. Does anyone know what the CEO of MDU makes a year? Not to mention his yearly bonus. I wonder if he has to pay for heating. "

consumer wrote on Sep 23, 2008 4:38 PM:

" Does anyone know what the big MDU CEO makes for HIS yearly wage? Not to mention HIS large yearly bonus too! That is so kind of MDU to keep the price lower than originally projected earlier this year. I bet he doesn't even pay for his heat. Another perk for the rich. Is this why our country is in this financial mess? "

Same Old Song and Dance wrote on Sep 23, 2008 1:17 PM:

" M.D.U.'s gas prices have eased for now, but when the first lengthy cold snap begins. Watch out for exorbitant price increases and they might try to fool the public again with a message that says, "There is a natural gas shortage, we need to raise the price to increase our bottom line." I can't wait to see how this fiasco plays itself out for the M.D.U customer this coming winter. "

Tim from Bismarck wrote on Sep 23, 2008 11:07 AM:

" I think it's time for the REC'S to get into the natural gas business!!!!!!! "

Grumpy Old Republican wrote on Sep 23, 2008 9:51 AM:

" Oh...this is great news. Instead of handing over your first-born for the December heating bill, you can simply part with an arm and a leg. To whom do I address the Thank You card? "

Rusty Shackelford wrote on Sep 23, 2008 8:24 AM:

" Drove through oil country last weekend. They are burning the natural gas coming out of the ground. Why can't they capture this for use in power plants or homes.
Big flames by every oil well you see. I just don't get it. "

Law wrote on Sep 23, 2008 7:51 AM:

" What will taxing their profits do? They will still have the same profit. There will not be any benefit to the customer. They may even increase their price to maintain their level of income. "

alternatives wrote on Sep 23, 2008 7:44 AM:

" MDU does a good job at making customers look at alternatives.. such as off peak..half the price to run as gas. Keep up the good work MDU my money will go elsewhere!!! a good example of another company heading for a bailout. I feel sorry for the customers that do not have a choice but MDU. "

BabyT wrote on Sep 23, 2008 7:43 AM:

" to Jeff: MDU's profits ARE monitored, and to even raise rates at all they need to go before the PCS and present their case, including financials about why the rate is justified. IIRC, this technically wasn't even a rate increase, it was an increase in the raw cost of the gas, which is passed directly onto the consumer as a line item. MDU had no say in it, and hopefully doesn't even see profit from it. MDU might technically actually see less profit when gas prices rise, and people conserve. "

Jeff wrote on Sep 23, 2008 6:15 AM:

" on the surface this looks like good news, but deep down I wonder if MDU's first projections were simply a planned process to rollout these new lower increases and have the public be happy about it. I for one don't buy it, the fact is MDU is like the other large out of control energy companies and the outragous profits need to be monitored, taxed and curtailed. "

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