Understanding natural gas pricing as a consumer 

The Southern Ute Utilities Division (Utilities) values our relationship with customers and would like to share how the natural gas market impacts end users. Utilities supplies natural gas to its customers at market prices. Utilities does not profit from high natural gas pricing as it passes the actual market cost of natural gas through to its customers. Supply and demand fundamentals drive pricing in the natural gas market both nationally and regionally. 

There are two primary factors impacting pricing in the San Juan Basin 

  • First, national storage levels in the U.S. are below the five-year average heading into the winter season, which is the season where natural gas inventories are typically drawn down to provide heat during the winter months. 
  • Second, the San Juan Basin is experiencing higher pricing when compared to other basins in the country due to low regional storage levels, increased Western U.S. natural gas demand, pipeline infrastructure limitations, and reduced flow from Canada to the Pacific Northwest. 

All these factors are resulting in higher than typical natural gas pricing when compared to prior years. 

Utilities encourages you to winterize your homes to save on your heating bills this winter. If you have questions, feel free to call the Utilities Office at 970-563-5500. 

Have a wonderful holiday season. 

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