Running counter to the continuing global fossil fuel price trends, Nevada regulators last Tuesday held a public hearing looking at future natural gas prices as part of a rate decrease request from Sierra Pacific Power Co. The utility is proposing to lower its retail gas rates 5.53% and retail power rates 4.57%.

The rate decreases are expected to be “short lived,” according to the Nevada Public Utilities Commission (PUC).

Noting that retail gas prices are expected to “soar” this winter, the Nevada PUC held an evening consumer session Tuesday to alert the general public to the future gas price situation, which obviously affects retail electricity charges, too. The PUC gave a presentation on projections for increased gas prices, how they impact the power costs, and generally why all of this means that retail customers need to look for additional ways to curb their energy use.

“The price that Nevada utilities pay for natural gas has gone up significantly this year, compared to 2007,” said PUC financial analyst David Chairez, adding that the daily spot price for gas at the Opal Hub in the Rockies averaged $5.13/MMBtu for the first five months last year, compared to $8.07/MMBtu for the same period this year.

Chairez quoted energy industry sources as saying natural gas price futures nationally hit a 29-month high the last week of June.

Noting that the current rate decreases were due to one-time “accounting adjustments” in rates, the PUC urged consumers to “start preparing now for increased costs,” suggesting they take advantage of the Sierra Pacific Resources’ utilities’ free energy audits to identify new ways to save energy in homes and businesses.

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