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RCED-84-77 1 (1984-02-10)

handle is hein.gao/gaobabekg0001 and id is 1 raw text is: 




BY THE US. GENERAL ACCOUNTING OFFICE


Report To The Honorable Thomas F. Eagleton

And The Honorable Nancy L. Kassebaum

United States Senate






Natural Gas Price Increases In Kansas City




                                     r-


Substantial recent increases in natural gas
prices have focused considerable congres-
sional and public attention on natural gas
issues.

To determine which factors contributed to an
almost double-price increase in the Kansas
City metropolitan area between January 1981
and January 1983, GAO obtained and ana-
lyzed information from the distribution com-
pany which sells gas to retail customers in
Kansas City, and from that company's princi-
pal supplier. GAO found that about three quar-
ters of the increase was due to the supplier's
higher gas purchase costs; the remaining
increase stemmed from operation and main-
tenance, taxes, depreciation, interest, return
on equity, and other expenses.
In April 1983, the supplier reduced its rates to
the distributor, which in turn reduced its rates
to retail customers. The result was a decrease
of about 20 percent in the per-unit cost of gas
to a residential customer.


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   GAO/RCED-84-77
FEBRUARY 10, 1984


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