The methods used by the City in buying natural gas and setting its price have not (to my knowledge) been publicly divulged. A bit of transparency would be refreshing. Just as reassuring would be confirmation from the City that any dollars collected in excess of the cost of natural gas are returned to the customers, and not diverted to other uses.
The spot price for wholesale natural gas is at present about 4.5 (four point five) dollars per mcf, near the lowest price on record this century. This chart says it all:
Why are Vicksburg's natural gas rates so high, when wholesale prices have dropped through the floor? Are excess dollars collected on gas bills being returned to the customers, or is the City using the profit for their pet project of the month? Are city officials hiding anything? Can we trust them to tell us the truth?
3 comments:
Here's some history from January 06: when nautral gas prices were high here the market was low. At the time it was a violation of market price dynamics. Since this is an election year why not make this an election issue becouse it will force those in the city to explain why thier prices are high.
Very good suggestion. What bothers me as much as the high prices is the possibility that they are making a profit and spending it on their pet projects. They obviously aren't going to be very forthcoming.
Spot natural gas is down to $3.80/mcf today. The city, with its rate decrease, is now only charging us about $13.70/mcf, versus about $16.00/mcf prior to the decrease. Perhaps the city should get out of the natural gas business.
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