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[cdn-nucl-l] Fw: Un-Natural Gas in Kansas -- a personal experience
Interesting observations on the price of natural gas (and pensions). The
price we pay is going up 40%.
----- Original Message -----
To: Multiple recipients of list ans-pie <email@example.com>
Sent: Wednesday, February 28, 2001 1:01 PM
Subject: Re: Un-Natural Gas in Kansas -- a personal experience
> 1. Nothing wrong with natural gas, but using it to generate electricity
> -- it should be used for direct heating (like stoves and furnaces). Some
> professors were saying this 30 years ago!
> 2. Well now that the well-head price is deregulated, producers can and do
> charge whatever the traffic will bear. Why do you suppose there was
> in the first place?
> 3. These schemes to "flatten" the utility bill do not really benefit
> (some universities tried to con the professors into doing this with their
> 9-month salaries). So you plan for having to spend more to heat in
> Moreover, how much of a house needs to be heated? Is central heating
> when you live in a couple of rooms?
> 4. And for all those who want to do away with Social Security, all I can
> is it sure is better than (a) depending on "charity" and (b) nothing. If
> can't plan sufficiently to save for their gas bills in winter, how do you
> them to plan for their old age?
----- Original Message -----
From: Gene Cramer
To: Multiple recipients of list ans-pie
Sent: Wednesday, February 28, 2001 12:31 PM
Subject: Un-Natural Gas in Kansas -- a personal experience
UNnatural gas in Kansas
Arkansas City KS DAILY TRAVELER 2001feb19
(1) High bills for elderly
(2) Hedging programs costs Kansas Gas Service Customers
(3) Explosions from stored natural gas
(4) Connection between HiLevel RadWaste Disposal and Explosions from Stored
(1) High natural gas bills for elderly.
When I was in Kansas last week visiting my 94 year old Mother, who still
lives in her well insulated 1910 era home, I was shocked to find her gas
bill for January 2001 was $450 while her electricity bill was only $34.61.
This was more than 4 times her highest bill in the winter of 1999/2000.
A little analysis revealed the cause was threefold. First, the price of gas
had gone from about $3.5 per million cubic feet in the summer to $8.68.
Second, feeling cold, she had raised the thermostat from 72 degrees up to
80 -- and left it there. Third, Mom is on the level pay plan, so she must
look for a special number to see what was last months billing, NOT just the
Perhaps there are other elderly who don't realize the impact of just raising
a few degrees setting on the thermostat until it is too late -- and there
went the Social Security check for that month.
If any of you have similar situations, please check the bill. And tell
Granny to put on a sweater on arising!!!!
(2) Hedging program costs Kansas Gas Service customers
Kansas has several large natural gas fields, so the Kansas utilities can buy
large amounts and store it underground. For several years Kansas Gas Service
(KGS) has profited by selling some of this gas out of state in the winter at
higher prices. This uses a hedge contract -- an option to purchase at a
higher price. If unused, the option expires without a transaction taking
place. The Kansas state regulatory commission must approve the sale of this
OOPs. In the summer of 2000, the prices KGS was paying to buy and store gas
was so high they stopped using the futures market -- because they couldn't
make money selling futures. But KGS had futures contracts, so had to
purchase gas on the open market to fulfill their futures contracts when
demand on KGS exceeded their storage. Thus KGS lost money by paying
$10/million cubic feet while having sold it in the summer for $8. KGS
customers will have to pay at least $15million extra this winter, after
having benefited the previous two winters by this practice.
(3) Explosions from stored natural gas in Kansas
Earlier this fall, several natural gas explosions in Hutchinson Kansas were
reported sketchily in the news. Come to find out, they were leaks from
natural gas stored deep underground in natural caverns. The leaks were up
several old oil wells (dry holes) which had never been capped properly. At
one time the practice with a dry hole was to just drop junk and broken tools
into the hole, and let nature seal the hole. No one at the time (1920s and
1930s) envisioned any need to do more.
For some reason, two dry holes leaked gas which caused explosions killing
several people in homes or in businesses. While now sealed, the visitors to
the local attractions have fallen off drastically. Especially school visits
to a pay for view educational center which drew several hundred thousand