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Natural gas prices down 37%
Customers should expect lower power bills this winter
Published Thursday, October 8, 2009
Natural gas prices are 37 percent lower than they were a year ago for Southeast Alabama Gas District customers, who should also expect lower energy costs through the winter, company officials said Thursday.
CEO Greg Henderson and marketing director Shannon Gooden spoke at Thursday’s Andalusia Area Chamber of Commerce’s breakfast, which SEAGD sponsored.
Henderson said while prices will go up during the winter months, they would be lower than last year.
“Natural gas prices on the wholesale side have gone down,” he said, “And our gas wells are helping us keep the prices lower.”
In 2002, SEAGD formed a partnership with 11 other municipal entities and purchased 750 natural gas wells in Tuscaloosa County.
There also is a larger supply of natural gas than in recent years, he explained. When gas prices spiked, suppliers began drilling shale. When natural gas costs were lower, the cost of drilling shale was prohibitive, he said.
“Now we have a lot more supply,” he said, adding that about 100 years’ supply has been identified in the United States in recent years.
A very mild hurricane season also has contributed to the steady supply, he said, because offshore drilling has not been interrupted by a storm this year.
Because prices fluctuate, Henderson explained, SEAGD buys about half of what it will need in advance, and half of its supply on the open market.
SEAGD also is observing customer appreciation week this week. The company, formed by 14 member municipalities including Andalusia in 1952, is headquartered in Andalusia and has 178 employees here. Other member municipalities include Abbeville, Brundidge, Dothan, Elba, Enterprise, Eufaula, Fort Deposit, Greenville, Headland, Luverne, Opp, Ozark and Troy. SEAGD also serves the towns of Ashford, Brantley, Coosada, Cottonwood, Daleville, Gantt, Glenwood, Midland City, Napier Field, New Brockton, Newton, Newville, Opelika, Pike Road, Pinkard, Red Level, River Falls and Rutledge.
Comments
Posted by Patrick (anonymous) on October 9, 2009 at 9:43 a.m. (Suggest removal)
The footnote should show wholesale prices are down nearly 85% from two years. I guess the difference between 85% and 37% is added profit (along with bonuses) for SEAGD?
Come on Alabama Electric (Energy South or what ever the new name is), with an 85% drop in gas prices to generate power you could drop the cost at least 10%.
Posted by proudamerican (anonymous) on October 9, 2009 at 11:52 a.m. (Suggest removal)
Patrick: If you have questions about these companies, why don't you go talk with them? You seem to want to throw little uneducated jabs at them in the paper, knowing they won't respond.
Incidentially, both companies are non-profit and are run by a board of directors that represent organizations that purchase from them. Don't you think they would have noticed a 48% "profit" in their cost of power or gas??
Posted by biscuitsandhoovergravy (anonymous) on October 9, 2009 at 2:17 p.m. (Suggest removal)
Proudamerican...by definition a non profit means there are no retained earnings. The obscene profits generated by these companies, which happen to be utilities alot of the time are passed along to the upper management in the form of extravagant salaries and bonuses, travel and perks and the best benefit packages money can buy.We the customers are saddled with the burden of paying whatever price they deem satisfactory. If you dont like the price of milk at Winn Dixie you can always go elsewhere...what do you do if you dont like the price of natural gas or electricity?
Posted by proudamerican (anonymous) on October 10, 2009 at 8:13 a.m. (Suggest removal)
Hey Biscuits, catch a ride with Patrick. You don't know anymore that he does about these companies.
Posted by proudamerican (anonymous) on October 10, 2009 at 8:14 a.m. (Suggest removal)
Hey Biscuits, catch a ride with Patrick. You don't know any more than he does about these companies.
Posted by biscuitsandhoovergravy (anonymous) on October 10, 2009 at 9:38 a.m. (Suggest removal)
Proudamerican...I will be the first one to admit my intellectual shortcomings and general lack of specific knowledge of the internal fiscal workings of a public utility. That being said...would you be so kind as to explain the rate structure of SEAGD as how it relates to the price of natural gas to it's customers? And while you're at it...tell us how long you have worked there...or is it Powersouth that signs your paycheck?
Posted by proudamerican (anonymous) on October 10, 2009 at 10:01 a.m. (Suggest removal)
Biscuits: Thanks for admitting to us that you didn't know what you were talking about when you made your unsubstantiated allegations. That's the first step to recovery - admitting you are wrong. And, to your last unsubstatiated allegation, I don't work for either company. As I said the first time, if you want to know how these companies operate and set rates, go ask them. I am sure they would be glad to educate you so you won't look so foolish next time. Have a good day.
Posted by biscuitsandhoovergravy (anonymous) on October 10, 2009 at 10:09 a.m. (Suggest removal)
Proudamerican...the personal rancor reflected in your remark I do not intend to dignify with comment...however I would like to address your general attitude of hopeless negativism.
Posted by proudamerican (anonymous) on October 10, 2009 at 10:24 a.m. (Suggest removal)
Biscuits: Wow, what big words. You must have gone to AHS! Or, have you gotten to your "wits" end?
Posted by winkie (anonymous) on October 12, 2009 at 1:08 p.m. (Suggest removal)
proud: No, you are at your wits end, bisquits is correct.
Posted by proudamerican (anonymous) on October 12, 2009 at 7:56 p.m. (Suggest removal)
Hey Winkie: who pulled your chain? This friendly discussion was between me and my friends, Patrick and Biscuits. And, I perceive that you probably know LESS about the topics than they do!
So, if you don't mind, BUG out!
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