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| Republic of Arizona
In the aftermath of a historic winter storm that shut down much of Texas, Arizona natural gas utilities are asking customers to save money where possible by taking shorter showers and no not using appliances such as gas fireplaces unless necessary.
Arizona has no natural gas wells and no storage. Fuel travels within the state, largely New Mexico and Texas.
Southwest Gas, which provides residential service in Arizona and Nevada, said the call was made to reduce the impact on bills for customers, who have to pay for fluctuations in the market price of fuel like the one that has currently taking place. But the city of Mesa issued a warning Thursday that its fuel supply itself could be at risk.
“Unfortunately, our ability to rely on these gas supplies is at high risk of shrinking in the coming days,” the city said in a press release. Mesa operates a public gas and electricity service for residents.
The city cited the Texas governor’s order banning gas producers from exporting fuel until Sunday, maintaining supply in that state.
“This order could jeopardize the ability of the city of Mesa’s gas utility to acquire enough supplies to meet the needs of our customers,” the city said Thursday. “As a result, we ask our customers to conserve and reduce all non-essential use of natural gas for the next few days.”
Southwest Gas, UniSource and other gas suppliers issued a similar request for conservation on Wednesday.
“On the issue of supply, there is certainly nothing we need to worry about here in Arizona,” said Southwest Gas spokesperson Amy Washburn.
Natural gas prices have skyrocketed across the country due to storms, which are increasing the demand for fuel for both home heating and power plants. In addition, gas wells where fuel is piped from the ground were affected by snow and ice, which reduced supply.
Costs passed on to customers
Utilities that depend on fuel pass the costs on to customers through their bills.
“The price of gas fluctuates with supply and demand and Southwest Gas does not benefit from the cost of natural gas,” the utility said in a press release. “The costs of natural gas are passed on directly to customers. While we can’t predict when costs will return to normal, Southwest Gas recommends customers save throughout the weekend.
Warmer weather that reduces gas demand should help.
“I understand things are starting to normalize a bit so that’s good,” Washburn said Thursday.
Mesa could not estimate how the price spikes would affect customers, but said that because its suppliers in Texas couldn’t honor their contracts this week, the city was forced to buy in the spot market. at prices “7000%” of the normal rate.
“To limit the need to purchase these supplies at extremely high prices, Mesa is asking natural gas customers to conserve natural gas,” the city said.
Salt River Project does not provide residential gas service, but burns natural gas at several power plants.
“For now, gas producers and suppliers continue to deliver supplies,” SRP spokesman Scott Harelson said Thursday. “We do not foresee any problems for our system, but are actively monitoring the situation.”
Arizona Public Service Co. also uses gas at several power plants in Arizona.
APS spokesman Alan Bunnell said Thursday its supplies from Texas were cut off, but APS had mitigated that disruption with natural gas from New Mexico and delaying maintenance at the plant. nuclear power plant in Palo Verde and a coal-fired power plant to keep them available. to answer the question.
“It is our responsibility to maintain a diverse supply of resources and to effectively manage our system to ensure our customers remain supplied with electricity during difficult times,” Bunnell said.
Both APS and SRP pass on the price they pay for natural gas for power plants to customers through bill items, which, like Southwest Gas, are passed on directly to customers.
Contact reporter Ryan Randazzo at ryan.Randazzo@ arizonarepublic.com or 602-444-4331. Follow him on Twitter @UtilityReporter.
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