By Jim Mimiaga

Cortez area natural-gas consumers will see a small increase in how much they pay for the service beginning with this month’s utility bills, reported a Greeley Gas representative Thursday.

Because of a rise in prices from suppliers, Greeley Gas was forced in November to raise prices from 43 cents to 45 cents per 100 cubic feet for both residential and commercial users. The cost increase for the commodity is attributed to a low supply coupled with a sudden rise in demand at gas-powered electricity plants, explained Karen Wilkes of Greeley Gas public affairs. Market variables influenced by abnormal weather patterns were the culprit this time.

"The supply has been low because of three successive warm winters and an unusually wet summer this year," she said. "Suppliers have been curbing drilling production for some time because of that low demand."

Warmer-than-normal winter seasons lowers the use of natural gas heaters in homes and business, while above normal summer rains reduces the need for gas-powered irrigation systems.

However, a spike in demand this summer for natural gas used at electric-power plants resulted in an increased value for the limited supply, pushing up prices.

Does that mean the costs will lower once supply catches up with demand?

"That’s what you always hope for, but because it’s a futures market, (the suppliers) will make those decisions so I can’t say for sure, but we are keeping a close eye on the market," Wilkes said. "This summer’s increase in demand caught all of us by surprise, and that’s when industry experts predicted that higher prices would trickle to down the consumer."

The last fluctuation Cortez experienced was in 1997, when the price also increased slightly. The latest cost adjustment translates to a 5.77 percent increase. For example, a bill of $43 would now be approximately $45.

Wilkes emphasized that the adjustment was approved by the Public Utility Commission and does not increase profits for Greeley, which passes price changes determined by the suppliers directly on to consumers, whether those changes are increases or decreases.

"As soon as the price lowers, we will pass on those savings to the consumer," she assured.