FOR IMMEDIATE RELEASE -- November 12, 2020
Contact: Kevin Kelly (573) 751-9300
Natural Gas Rates to Change for Spire East 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, Spire East customers of Spire Missouri, Inc. d/b/a Spire will see natural gas rates change under a filing that takes effect on November 16, 2020.
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.
Residential customers currently pay approximately $0.41 per therm of natural gas. Under this filing, the rate will drop to approximately $0.37 per therm.
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 East provides natural gas service to approximately 654,600 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.