Making a Mockery

Tuesday, February 07, 2006

Questar sings "Just Can't Get Enough..."

Questar Gas has offered to cut its rates $10.2 million in exchange for the state of Utah to allow Questar to adopt a new method for collecting its overhead and labor costs Currently Questar is forced to link its overhead and labor costs to the amount of gas used by its customers. Questar wants to radically change this policy and remove the fixed costs from the amount of gas used to a variable rate based upon its operating costs. Why is this a lame idea for the consumer? It takes all the business risks inherent in a business and places them squarely on the consumer. Example: Questar has to pay more for labor and will pass the buck directly to the consumer instead of going through the Utah Committee of Consumer Services for rate hikes. So what happens is during the slow seasons when gas usage shrinks Questar wants to pass the buck to consumers by charging them more for their products via the increase in the “variable” rate. So Questar thinks they can just cut prices by $10.2 million dollars and get the state board to give them the keys to the hen house. In the recent past Questar has ousted outspoken members of UCCS who have called for accountability for Questar’s rate increases. Hmmm Ross Perot: “If the fox is in the hen house the farmers a sleep.” Latest blasphemy from Questar

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