FOR IMMEDIATE RELEASE -- March 27, 2013
Contact: Kevin Kelly (573) 751-9300
Missouri Gas Energy Customers To See A Drop In Natural Gas Rates
JEFFERSON CITY--- To reflect estimated changes in the wholesale cost of natural gas, Missouri Gas Energy (MGE) customers will see natural gas rates decrease under a filing that takes effect on April 1, 2013.
MGE residential customers currently pay approximately $0.60 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 $0.04 per Ccf.
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.
MGE serves approximately 500,000 natural gas customers in Missouri.