JEFFERSON CITY, Mo. (KFVS) - Natural gas customers will see a 3-cent rate increase under a filing that will take effect on November 1.
According to the Missouri Public Service Commission, the increase is to reflect estimated changes in the wholesale cost of natural gas, as well as a change in Ameren Missouri’s Actual Cost Adjustment factor.
The ACA factor 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 either refunded or collected the next year.
The PSC said residential customers currently pay about 35 cents per Ccf (per hundred cubic feet) of natural gas. Under the filing, the rate will increase to about 38 cents per Ccf, an increase of 3 cents per Ccf.
They said about 50 percent to 55 percent of a customer’s current natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas, or 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.