FOR IMMEDIATE RELEASE -- November 15, 2012
Contact: Kevin Kelly (573) 751-9300
Natural Gas Rates to Drop for Summit Natural Gas Customers
JEFFERSON CITY---To reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment (ACA) factor, Summit Natural Gas of Missouri, Inc. (formerly Missouri Gas Utility) customers will see natural gas rates drop under a filing that takes effect on November 17, 2012.
The ACA factor is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12 month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.
Northern System: Residential customers currently pay approximately $0.50 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.40 per Ccf—a decrease of approximately $0.10 per Ccf. The Northern System includes the communities of Hamilton, Coffey and Gallatin.
Southern and Lake of the Ozarks Systems: Residential customers currently pay approximately $0.54 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.42 per Ccf—a decrease of approximately $0.12 per Ccf. The Southern and Lake of the Ozarks Systems include the communities of Warsaw and Cole Camp.
The PSC continues to encourage customers to work to reduce their energy consumption. A number of energy saving tips can be found on a website (www.beenergyefficient.org
) from the Missouri Public Service Commission and the Missouri Department of Natural Resources.
Approximately 65% to 75% of a customer’s natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Summit Natural Gas (formerly Missouri Gas Utility) serves approximately 2,500 natural gas customers in Missouri.