RENO, NV - “Rates are likely going to go up because natural gas prices are going up,” said Sierra Pacific Resources Michael Yakira back in 2008.
When we took pictures at Tracy Power plant natural gas was at record highs.
What a difference four years can make---natural gas hit its lowest price in a decade this month.
Local bills for residents and commercial business are 30 to 50% lower than eight years ago.
While CZYZS Appliance general service manager says the price of natural gas hasn't sent customers in droves to buy stoves, ovens and dryers--the price doesn't hurt.
“I think it's a part of the trend why people are swinging across to natural gas, manufacturers are seeing that too,” says Ian Roberts of CZYZS
And just as a pot can boil over, the same can be said for the natural gas market.
As a matter of fact, analysts say there is too much natural gas--so much so there is no where left to store it.
Combine that with a mild winter nationwide, when 70% of natural gas is purchased and you've even got local utility companies using it to manufacture electricity for their customers.
“For the last two years we've seen steady decreases in electric rates in fact they are about 25% lower than they were at the beginning of 2009, so all of that is good news for all of our customers,” says Mary Simmons of N.V. Energy.
Analysts say the price of natural gas should make a steady increase as producers back off, however others predict natural gas could go as low $1.35 per thousand cubic feet before it’s all over.
It closed Friday slightly higher at $2.18.