From Deseret News archives:

Energy crisis could unplug growth

Published: Saturday, May 14, 2005 6:15 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Rising prices and dwindling resources are stirring alarms among energy experts, who contend Utah's historically low energy prices may soon be a thing of the past, threatening future economic growth.

Already, mounting electricity prices coupled with skyrocketing natural gas and oil costs are putting pressure not only on Utah consumers but also on Utah businesses and industries that often cannot pass higher energy costs on to customers. No relief is in sight, with steeper prices projected over the next five to seven years, according to the Utah Association of Energy Users, a Salt Lake-based trade organization whose 40 members spend more than $250 million annually on natural gas and electricity.

In fact, Paul Barber, a senior consultant for the association, said Utah consumers, businesses and industry in 2003 spent $2.06 billion in overall energy costs, a 25 percent increase compared to $1.65 billion spent in 1999.

Those increases do not account for recent spikes in natural gas and electricity. Last week, Salt Lake-based Questar Gas Co. said it wanted to raise natural gas prices 14.4 percent, the third-largest rate increase in 17 years. That request follows a 10.4 percent hike in natural gas rates last fall.

Story continues below
Since May 2000, PacifiCorp — which operates in Utah as Utah Power and supplies electricity to 75 percent of Utah residents — has raised rates by an average of more than 25 percent. That is in contrast to the 1990s, when rates fell by more than 30 percent.

"In the past, energy has been so abundant people haven't focused on it," Barber said. "We're now getting to a point where we're going to have to start worrying about it again. Utah needs a comprehensive energy strategy, as does the United States."

Historically, Utah has been fortunate, Barber said, as the state ranked near the top 10 of all states in terms of oil, natural gas and coal production.

"It helped shield Utah from fluctuations in supply from overseas," Barber said, "but more importantly it provided a lot of good jobs."

Yet those vast resources may be showing signs of diminishing.

For instance, Utah coal reserves — the fuel supplying 95 percent of Utah's electricity — once were thought to be inexhaustible. However, Barber said Utah faces a potential coal crisis, with only 14 to 19 years of coal supplies remaining.

Of the state's roughly 14 billion tons of coal reserves, 5 billion tons are off limits, located in the Kaiparowits Plateau. That leaves the state with 9 billion tons, which Barber said still represents a tremendous amount of coal, but nearly two-thirds of it cannot be mined with an underground long-wall machine, making it uneconomical to recover.

Comments

You can be the first to comment on this story.

Image

Scott Gutting, executive director of the Utah Association of Energy Users, says Utah should be proactive and develop its own energy policy.

previousnext

Latest comments

To: Everyone of you(except Abe Lincoln 4:56) Why are all of you calling this...

RSL surprised by Chicago's Fire

I went to watch the NFL match at Wembley stadium a couple of moths ago to see...

Have some respect and back off....everybody knows what he did was wrong and...

Lack of experience no RSL concern

we have players with pace that can run wide and attack the Galaxy, and they...

D-line huge part of Miner's success

I'm glad some people can recognize who some of the real players are. Linemen...

Photos: A Royal welcome home

that is why one of many reasons I love soccer. The players appreciate and...

To anyone who has been paying attention: The jazz have NOT been getting...

They'll be playing the very best they can, there's not much pressure on USU....

BYU, Utah struck gold in coaches

Amen. I am a fan of both teams. Think the world of both coaches and cheer...

RSL surprised by Chicago's Fire

Chadders and REAL loyalists, family, friends" You beat me to it. ...

Advertisements
Advertisement