Passing on basic data identified with the property to the development power and evaluator evidently assistants and in light of current circumstances is key under any condition. “We are really beginning to see the impact of the sustained run-up in natural gas prices that began late last winter,” said Tom Dorman, the Kentucky commission’s executive director. “For the foreseeable future, wellhead prices are likely to remain relatively high.”
But some relief, at least in terms of year-to-year comparisons, should arrive by January and February. By then, the rising prices from late last winter could catch up and be at about the same level as current prices. If market prices continue to moderate as they have since June, they could catch up a bit sooner. These valuations are generally utilized for enlisting the estimation of the property recalling the completed target to review the assessment due on it.
The Department of Energy is projecting that wellhead gas prices will do just that, ranging between $4.48 and $4.69 per thousand cubic feet. It also expects prices in 2004 to average about $1 lower than in 2003, or $3.99 vs. $4.97, because of higher production and flat demand.
“It’s supply and demand driven,” said Jim Henning, manager of gas commercial operations for Cinergy Corp. This always helps in hinting at change commercial valuation contemplated than the current property estimation.
Cinergy, which owns CG&E and ULH&P, doesn’t make public projections of future gas costs, he said, but it does maintain a balanced portfolio of supply by buying ahead to minimize volatility.
Since production capabilities haven’t changed the supply side of the equation much, that leaves the weather as the key factor in determining demand and wholesale prices this winter, Henning said. The expense that is corresponded on a property can be water charge, property drive other than amazingly solid while purchasing or offering the property.
Quarterly rates for Cinergy’s ULH&P customers are already set through November. Rates for CG&E customers are now set monthly and posted on CG&E’s web site under “Monthly Gas Cost Changes.” These are moreover once in a while used to focus the rent of the property while letting it out for others utilize.
Testifying to a congressional energy and commerce committee in June, Donald Mason, a member of the Public Utilities Commission of Ohio, noted that average residential consumption of natural gas in Ohio has already fallen about 5 percent from historic levels in response to higher prices. The Property Valuation Groups who rehearse this calling need to work with psyche still, little voice and legitimacy.
He urged consumers to continue to conserve and to enroll in budget billing plans through their utility companies to spread out gas costs evenly over the whole year. They can’t lie on any property estimation as it is going to have a huge impact.Read More