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Ameren Missouri Customers Can Expect Lower Rates for Natural Gas

Ameren Missouri residential and business customers will pay lower rates for natural gas compared to last winter under a new Purchased Gas Adjustment (PGA) that has been approved by the Missouri Public Service Commission (MPSC). The lower rates are the result of lower wholesale costs. The new PGA becomes effective Nov. 1.

This heating season, Ameren Missouri customers in Columbia, Jefferson City, Mexico, Wentzville, Cape Girardeau and Marble Hill will benefit from a three percent decrease in the PGA. They will pay an average of $0.65 per one hundred cubic feet (Ccf) of natural gas, which includes the cost of interstate transportation, leased storage and the natural gas commodity. By comparison, during the 2012-13 heating season, customers in those particular cities paid an average of $0.67 per Ccf.

In addition, the Incremental PGA for Rolla system customers will be offset by a refund credit from Ameren Missouri’s settlement with MoGas Pipeline for overcharges from 2004 to 2008. Beginning Nov. 1, the Incremental PGA for customers in the Rolla area will be offset by a refund credit for approximately three years. The Rolla system customers will pay the same PGA $0.65, which represents a 22 percent decrease from the $0.83 during the 2012-13 heating season.

Rolla system customers will receive a total of $2.1 million in reimbursements. The remaining $1.4 million will go to all of Ameren Missouri’s gas customers. The refund to Ameren Missouri’s other gas customers is minimal in comparison to customers in the Rolla service area and has been factored into the PGA for this heating season.

Monthly bills are based on the actual amount of natural gas used by a customer.

The PGA reflects the wholesale cost of natural gas, plus the cost of transporting gas to the company’s system. The cost reduction is passed on to the customers – dollar for dollar – through the PGA without a markup in price. Wholesale gas prices aren’t regulated and an increase or decrease is based on market conditions of supply and demand. Since the wholesale costs change daily – while the PGA doesn’t – the PGA also includes an adjustment to compensate for under- or over-collection of actual costs in previous periods.

Jim Massmann, gas supply director, said that Ameren Missouri has secured adequate natural gas supplies to meet customers' needs during the upcoming heating season. A significant portion of the gas supply costs are hedged or price protected to insulate customers from market price volatility.

Ameren Missouri reminds customers that they can reduce their natural gas usage by installing more efficient natural gas equipment. Visit ActOnEnergy.com for details and information about rebates for natural gas furnaces and boilers.


Ameren Missouri has been providing electric and gas service for more than a century, and our electric rates are among the lowest in the nation. We serve 1.2 million electric and 127,000 natural gas customers in central and eastern Missouri. Our mission is to meet their energy needs in a safe, reliable, efficient and environmentally responsible manner. Our service area covers 63 counties and more than 500 towns, including the greater St. Louis area. For more information, visit AmerenMissouri.com.