FOR IMMEDIATE RELEASE -- October 30, 2013
Contact: Kevin Kelly (573) 751-9300
Laclede MGE Customers To See A Change In Natural Gas Rates
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, Laclede Gas Company-Missouri Gas Energy Operating Division (Laclede-MGE) customers will see natural gas rates change under a filing that takes effect on November 1, 2013. MGE is a division of the Laclede Gas Company.
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.
Laclede-MGE residential customers currently pay approximately $0.57 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.56 per Ccf, a decrease of approximately $0.01 per Ccf.
Approximately 55% to 60% 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.
A number of energy saving tips can be found on a website from the Missouri Public Service Commission and the Division of Energy (www.beenergyefficient.org)
Laclede-MGE serves approximately 500,000 natural gas customers in Missouri.