Natural Gas: Utilities Halted Hedging Program in 2011

The Gazette (Colorado Springs, CO), May 23, 2013 | Go to article overview

Natural Gas: Utilities Halted Hedging Program in 2011


a bid to deliver stable rates to natural gas customers.

The $140 million could be losses for the total 15 years; or it could be losses for the past five years, Nester said. He won't know until he completes the audit, which he expects to do in the next 60 days.

"We are trying to make sure we put this in the proper context," Nester said.

Utilities halted its natural gas hedging program in 2011 when it saw that predicting the gas market was not going its way.

All the while, ratepayers have had consistent rates, said Bill Cherrier, Utilities chief planning and finance officer. A typical customer using 60 cubic feet paid $34.50 a month in 2002; $47.55 in 2007; and $46.63 in 2013.

"The goal was to provide price stability," he said. "It did exactly what we intended it to do."

The hedging program never was about chasing the lowest prices, Cherrier said. It was about providing stability in the rates to the customers.

Utilities began the natural gas hedging program in 1997, when the market saw sharp increases and sharp decreases month to month in natural gas prices. Until 2006, Utilities was being praised for its savvy program, which that year reported saving ratepayers $32.7 million over five years.

Without hedging, customers would have paid market rates. For example, in January 2000 the price was $2 per 1,000 per cubic feet; in January 2001 the price was $9, Cherrier said.

Then in 2008, the economy took a turn south. Industry experts predicted a rise in natural gas prices. Natural gas buyers, including Utilities, locked in their price for three years. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Natural Gas: Utilities Halted Hedging Program in 2011
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.