Rising natural gas prices impact small businesses

Many of Green Country's small businesses are taking a big hit for keeping the office warm. Many owners say higher gas bills are throwing a kink in their budgets. <br><br>KOTV's Donn Robertson

Saturday, January 13th 2001, 12:00 am

By: News On 6

Many of Green Country's small businesses are taking a big hit for keeping the office warm. Many owners say higher gas bills are throwing a kink in their budgets.

KOTV's Donn Robertson explains how the higher natural gas prices are affecting the bottom line.

Many small businesses say they are seeing bills four times more than they saw a year ago. They say they'll need relief if it lasts much longer. They also want answers. When Randy Autry started Midwest Bearing and Chain in Broken Arrow 20 years ago he didn't have heat or water in his office. "I was just worried about generating income."

The income has helped build a much bigger shop. He's had heat for several years now. Lately, he's been keeping it cool back in the warehouse. His past ONG bill was nearly $500. A year ago it was $132. "At minimum, I think the government should step in and investigate it and find out what is going on."

The Oklahoma Corporation Commission faxed out a news release titled, what's the deal with my gas bill. The commission says under state law, the natural gas company is forbidden from making a profit on the price of gas itself. The natural gas company makes its profit through its delivery charge, like a shipping company which delivers something you buy from another firm. ONG says 85% is the cost ONG pays for the gas. 6% is taxes. 9% of their bill is for the cost of its service.

Natural gas is traded as a commodity, so the people and companies who bought low and traded high are looking good. The corporation commission says energy prices plummeted to record lows a few years ago, forcing many domestic producers out of business. Others survived, but had to stop drilling. Autry also wants to know why there are more charges on his gas bill.

The commission says it ordered a new format so you would know exactly where your money is going. There are no new charges on your bill. "We worked in coats a lot." The Sound Company in Tulsa cut off its natural gas because of the prices. Workers turn on a propane heater when they need it. Electric heaters are keeping the front lobby warm. "They are saying that there is a shortage of natural gas. We're like one of the largest exporters of natural gas, Oklahoma. Maybe we should stop exporting."

The Oklahoma Corporation Commission says many Oklahoma companies stopped drilling for natural gas during the low prices. Drilling in Oklahoma is starting to pick up, but they are limited because of a shortage of workers, equipment and the cash needed to drill wells. For the companies who have supplies of natural gas, they're obviously doing great.

You can check out www.KOTV.com, for more on what's the deal with my gas bill.