FACT Sheet
Energy costs have risen dramatically
2009 Natural Gas Prices On an annualized basis, there will be a gas cost adjustment of about 22% for residential customers, 21% for small commercial and 22% for large commercial. The average residential bill will increase approximately $27 per month.
ENSTAR’s cost of gas will change effective with your January 2009 bill, which may include consumption from December 2008. ENSTAR makes its money on the delivery of natural gas. Due to increased efficiencies and customer growth, ENSTAR’s cost to deliver gas to our customers has decreased over the past ten years. (see cost comparison chart below). ENSTAR must file it’s gas costs with the Regulatory Commission of Alaska in November of each year. ENSTAR receives no benefit or profit from the gas cost increase. Gas costs are negotiated with the producers and are passed directly on to ENSTAR’s customers following the RCA’s yearly review.
Why are prices higher in 2009?
ENSTAR’s older natural gas contracts with producers are indexed against oil, which saw record prices in the index period. ENSTAR's other contracts are indexed on a trailing average of Lower 48 natural gas prices. The high cost and volatility over the past 36-months has raised the average, not only for Alaska customers but for all customers who use natural gas.
What is ENSTAR doing concerning gas supply?
The natural gas reserves discovered in Cook Inlet during the 1950’s and 1960’s are being depleted. New exploration and development are necessary to meet Southcentral Alaska’s energy needs. ENSTAR’s natural gas contracts have encouraged additional exploration and development in the Cook Inlet. New natural gas supplies have been discovered. ENSTAR has submitted new natural gas supply contracts to the RCA, which will provide stable supply through 2010.
Cost Comparison
Percentage of Annual Bill
Average Bill = $3.77/Mcf
Cost Comparisons 1998
What can you do?
Enroll in budget billing. Budget billing or "level pay" plan allows consumers to spread out their utility payments equally over a 12-month period. Budget billing includes a true-up adjustment at the end of the budget billing cycle to determine any variance between the budget amount and actual charges. Avoid unnecessary late fees, finance and other charges. A bill will be considered past due and delinquent if not paid within 25 days from the date billed; therefore it is crucial to pay the bill on time to avoid late fees and finance charges. Conserve Energy. Replace or caulk around leaky windows and doors, install a set-back thermostat, lower the temperature in your garage, basement or other infrequently occupied rooms, have your heating system tuned up, replace older heating system with new high efficiency equipment, add more insulation to your attic and crawl space or basement, and turn down the heat to 55 deg F when you leave for a weekend or vacation.
Natural Gas Price, 45% $1.85/Mcf
ENSTAR 55% $1.92/Mcf
*Average Consumption per household in 1998 = 179 Mcf *Average Annual Bill = $675.00 ($56.25/month)
Cost Comparisons 2009
Average Bill = $10.46/Mcf
83 cents
Cost of Natural Gas
Cost of Delivering Gas to Customers
10 cents
3 cents 4 cents Taxes
ENSTAR Income
Natural Gas Price, 83% $8.75/Mcf
ENSTAR 17% $1.71/Mcf*
Contact Information
*Average Consumption per household in 2009 = 169 Mcf *Average Annual Bill = $1844.00 ($154.00/month)
*Rounded up
Anchorage: 1-907-277-5551 Mat-Su Area: 1-907-376-7979 Kenai Peninsula Area: 1-907-262-9334 Whittier: 1-877-907-9767 Website: www.enstarnaturalgas.com ENSTAR Natural Gas Company 3000 Spenard Road, Anchorage, Alaska 99503