FOR IMMEDIATE RELEASE -- November 08, 2018
Contact: Kevin Kelly (573) 751-9300
Natural Gas Rates to Change for Spire 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, Spire Missouri, Inc. d/b/a Spire (formerly Laclede Gas Company) natural gas customers will see natural gas rates change under a filing that takes effect on November 15, 2018.
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.
Under the filing, Spire residential customers will see natural gas rates decrease by less than $0.01 per therm. Spire stated in its filing that compared to current rates and assuming normal usage, this change would decrease the average monthly natural gas bill for a typical residential customer over the upcoming winter by approximately $0.43 a month.
Approximately 50% to 55% of a customer’s current 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.
Spire provides natural gas service to approximately 651,100 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.