Energy costs have risen dramatically
ENSTAR’s cost of gas will change effective with your
January 2009 bill, which may include consumption from
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.
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.
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
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.
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