| Arizona Republic
After a historic winter storm that closed much of Texas, natural gas dealers in Arizona are asking customers to save as much as possible by taking shorter showers and not using appliances like gas fireplaces, unless necessary.
Arizona does not have its own natural gas wells and neither does it have storage. Fuel is channeled to the state, much of New Mexico and Texas.
Southwest Gas, which provides residential service in Arizona and Nevada, said the call was made to reduce the impact of the bill on customers, who are expected to pay for fluctuations in the market price of fuel like what is happening now. But the city of Mesa issued a warning on Thursday that its own fuel supply may be at risk.
“Unfortunately, our ability to rely on these gas supplies is in danger of being restricted in the coming days,” the city said in a press release. Mesa operates a gas and electricity service for residents.
The city cited the Texas governor’s order that gas producers not export the fuel until Sunday, maintaining supplies in that state.
“This order could undermine the ability of the gas utility in the city of Mesa to purchase sufficient supplies to meet the needs of our customers,” the city said on Thursday. “As a result, we are asking our customers to conserve and reduce any non-essential uses of natural gas for the next few days.”
Southwest Gas, UniSource and other gas suppliers placed a similar order for conservation on Wednesday.
“When it comes to supply, there is definitely nothing to worry about here in Arizona,” said Southwest Gas spokeswoman Amy Washburn.
Natural gas prices have soared across the country because of storms, which increase demand for fuel for both domestic heating and power plants. In addition, gas wells where fuel is channeled from the ground have been affected by snow and ice, reducing supply.
Costs passed on to customers
Concessionaires that depend on fuel pass the costs on to customers through their accounts.
“The price of gas fluctuates based on supply and demand and Southwest Gas does not profit from the cost of natural gas,” the company said in a press release. “Natural gas costs are passed on directly to customers. Although we cannot predict when costs will return to normal, Southwest Gas recommends that customers conserve over the weekend.”
The warmer climate that reduces gas demand should help.
“I understand that things are starting to normalize a little bit, so that’s a good thing,” Washburn said on Thursday.
Mesa was unable to estimate how much price spikes would affect customers, but said that since its suppliers in Texas were unable to fulfill their contracts this week, the city was forced to buy on the spot market at “7,000%” rate normal.
“In order to limit the need to buy these supplies at extremely high prices, the Bureau is asking natural gas customers to conserve natural gas,” the city said.
The Salt River Project does not provide residential gas service, but it burns natural gas at several power plants.
“At this point, gas producers and suppliers continue to deliver supplies,” said SRP spokesman Scott Harelson on Thursday. “We do not anticipate problems with our system, but we are actively monitoring the situation.”
Arizona Public Service Co. also uses gas at several power plants in Arizona.
APS spokesman Alan Bunnell said on Thursday that his supplies from Texas had been interrupted, but that APS mitigated that interruption with natural gas from New Mexico and delayed the maintenance of the Palo Verde Power Plant nuclear power plant and coal-fired power plant to keep them available to meet demand.
“It is our responsibility to maintain a diverse supply of resources and effectively manage our system to keep our customers supplied with electricity in difficult times,” said Bunnell.
Both APS and SRP pass on the price they pay for natural gas to power plants to customers through line items in the accounts, which, like Southwest Gas, are a direct pass on to customers.
Talk to reporter Ryan Randazzo in ryan.Randazzo@ arizonarepublic.com or 602-444-4331. Follow him on Twitter at @UtilityReporter.
Sign up to azcentral.com today.