At Gov. Blunt's request, AmerenUE has agreed to waive all reconnection fees and suspend deposit requirements for Missouri customers receiving Low-Income Home Energy Assistance Program (LIHEAP) or Utilicare assistance (authorized by state statute) to pay winter heating bills. LIHEAP is a federal program with allocations made to states to assist with utility costs. The company's agreement with the governor and the PSC will cover the period Nov. 1, 2005 to March 31, 2006.
AmerenUE customers who are having difficulty paying their bills should call the Ameren company listed on their bills. Company representatives will work with customers on payment arrangements and refer eligible customers to agencies that may be able to help with energy assistance. AmerenUE's Dollar More Program is the region's largest privately managed energy assistance programs aimed at helping needy individuals and families cover their energy costs.
AmerenUE purchases natural gas from wholesale suppliers located in various U.S. natural gas production areas. The wholesale price is not regulated. It rises and falls based on market conditions caused by supply and demand. AmerenUE passes the cost of natural gas on to customers, dollar for dollar, without any "markup" in price---so customers pay what Ameren companies pay for the natural gas supplies purchased from gas producers---not a penny more.
Approximately three-fourths of a residential customer's bill is the cost of natural gas from Ameren utility companies' suppliers, while only a quarter of the billing amount goes to pay for the operation and construction of gas distribution systems.
To dampen price volatility and ensure reliable supply for customers, Ameren uses a range of financial tools, negotiates long- and short-term gas supply contracts, diversifies interstate pipeline transportation, and uses extensive underground storage resources.
"Despite these efforts, natural gas prices continue to rise--driven by record high prices for crude oil, an extremely active hurricane season which has threatened offshore gas production platforms and a very hot summer when gas has been used to generate electricity," says Scott Glaeser, vice president, Gas Supply and System Control, AmerenEnergy Fuels and Services. "In addition, we've had stagnant or declining gas production. Many promising areas for exploration of new gas supplies in the U.S. are off-limits due to federal policies or environmental regulations."
"While Ameren has adequate supplies of gas with firm contracts established, we must pass on higher prices on the gas we supply. We are encouraging customers to take steps to conserve, to call us if they are worried about paying their bills and to consider a range of payment options because we are concerned about the financial impact of high winter heating bills - especially if there is a cold winter," says Richard Mark, AmerenUE senior vice president, Missouri Energy Delivery. "Customers can minimize the impact of higher natural gas prices by signing up for our Budget Billing program, which spreads payments out throughout the year."
By signing up now, customers can avoid paying high bills immediately. No additional deposit is required for Budget Billing. The plan allows customers to pay an average monthly bill amount based on the last 12 months of usage. The program is open to electric only, gas only and combination electric and gas customers. Customers can enroll in the program or request program removal at any time.
To better manage rising gas costs, customers can also take steps to conserve energy--by plugging air leaks, caulking and weather stripping and by sealing doors and windows and turning down thermostats (every degree you turn down your thermostat will reduce consumption by 10 percent). Regularly changing furnace filters and replacing inefficient furnaces can also save energy. And while heating accounts for the largest portion of residential natural gas usage, the water heater is the second largest user. Turning a water heater to the lowest setting (usually 120 degrees F) and placing an insulated jacket over that water heater can save on energy bills.
For information on how to contact LIHEAP or other sources of help or for tips on how to manage energy bills and rates, customers should go to Ameren's Web site at www.Ameren.com.
Ameren companies serve 2.3 million electric customers and 900,000 natural gas customers in a 64,000-square-mile area of Missouri and Illinois.