(DOWNLOAD) "Utah Department Administrative Services V." by Court of Appeals of Utah * Book PDF Kindle ePub Free
eBook details
- Title: Utah Department Administrative Services V.
- Author : Court of Appeals of Utah
- Release Date : January 06, 1983
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 88 KB
Description
OAKS, Justice: For over forty years, Mountain Fuel Supply Co. (MFS) has conducted oil and gas exploration activities to assure continuing supplies of natural gas for its customers. As a result, current gas production from MFS wells accounts for over thirty percent of its total requirements. Consumers (ratepayers) pay cost-of-service prices for this gas, a fraction of the federally regulated market price (about one-third in 1977). Since 1947, all or part of the expenses of such exploration and development have been treated as normal utility operating expenses and, with regulatory approval, have been paid by MFS ratepayers in the same manner as expenses for the cost and distribution of gas. But, as the comparative scale of such expenditures grew, it became apparent that this manner of funding was fundamentally inconsistent with an unregulated oil and gas exploration program. Consequently, the practice was increasingly controversial with customers, stockholders, and the Public Service Commission. Beginning in 1972, the Commission required an increasing proportion of the exploration and development expenses to be paid from company resources rather than ratepayer accounts. In the period from 1972 through 1976, MFS provided about $8 million of these expenses and the ratepayers, $17 million. Effective in 1976, exploration and development expenses were divided equally.