Customers have been noticing that some other gas companies began announcing price declines earlier this month, while MDU's rates remained high. Sharp explained that companies request price adjustments from regulators on different schedules, which prevents any good comparisons between companies. One company might apply for a rate change 30 days ahead of the affected billing period, while another company might apply 20 days ahead for the same billing period. Companies also differ in when a price adjustment takes effect once regulators approve it, he said. Another factor is the how much the price of gas fluctuates in the wholesale market where a company purchases.
Prices reflect the demand for gas within that particular market.
Sharp said MDU, which purchases gas in the Rocky Mountain area, has been in a better position than many companies because it has significant reserves. Gas was stockpiled during the summer when prices were lower. Some gas customers in the country will see larger rate reductions, but their rate increases also were larger than those of MDU's North Dakota customers, he said. That's little consolation to MDU customers who have been making more calls than usual to the company to air concerns or complaints. Most of them understand that it's not MDU that's keeping this money.