Austin Utilities has announced a Purchase Gas Adjustment (PGA) for natural gas prices in Austin.

Thursday, January 11, 2001

Austin Utilities has announced a Purchase Gas Adjustment (PGA) for natural gas prices in Austin.

"The (PGA) will increase an additional $0.326 per ccf for a total PGA of $0.608 above the natural gas rate," said Austin Utilities General Manager Jerry McCarthy.

This PGA was based on a determination of a natural gas department loss for December 2000 of $940,000 and expected expenses for 2001. Austin Utilities’ natural gas department saw a loss of $850,000 in November 2000, but this loss is not covered by the additional cost. This November loss will be kept on the books for the time being.

McCarthy reported that without the additional PGA, losses for the year 2000 "would be $1.5 to $2 million."

"If gas prices remain at this level, it is unlikely that the PGA will go away for the remainder of the year," said McCarthy. Austin Utilities encourages residents to apply for the budget plan for billing over the phone or by coming to their office, which should aid in dealing with the increase.

The PGA was discussed at the Austin Utility Board meeting on Tuesday night.

Also at the meeting, the two new members of the board, Frank Lorenzen and Paul Johnson, were sworn in. Lorenzen and Johnson replace former board members Ruth Rasmussen and Vincent Lynch. Jack Dunlop was named as board president.

Another subject discussed was a projection that Minnesota will experience an energy shortage by 2006. Members of the board expressed concern that the state will not be able to meet the demand and warned against deregulation, citing California as a cautionary example.

The general manager evaluation and wage increases for non-union staff were tabled for the time being.