All of Ameren Missouri’s 127,000 natural gas customers will pay a lower price for natural gas this winter than last winter under a new Purchased Gas Adjustment (PGA) that was approved by the Missouri Public Service Commission (PSC) today and becomes effective Nov. 1. Ameren Missouri cites lower costs from its suppliers due to lower demand and lower transportation costs, as the reasons for this winter’s lower price to customers.
For most residential customers, the savings will average about $1.60 per month during the winter heating season of November through March, but for customers in Rolla, Salem and Owensville, the savings will average about $33 per month due to lower transportation charges from one pipeline that carries gas to those areas. The lower transportation charges resulted from a settlement reached with MoGas Pipeline LLC in a transportation rate case before the Federal Energy Regulatory Commission (FERC). Ameren Missouri actively intervened in support of lower transportation charges in the case.
The PGA reflects the wholesale cost of natural gas from Ameren Missouri’s suppliers, plus the cost of transporting that gas to the Ameren Missouri system. Wholesale gas costs are not regulated and go up or down based on market conditions of supply and demand. Since these wholesale costs are volatile and can vary widely throughout the year, the PGA also includes an adjustment to compensate for any under- or over-collection of actual costs in previous periods. Ameren Missouri passes these costs on to customers, dollar-for-dollar, through the PGA without any “markup” in price. Ameren Missouri makes no profit from the PGA.
For residential customers, the PGA accounts for about two-thirds of a customer’s total gas bill, excluding taxes.
Under the adjustment approved by the PSC today, the PGA for most customers will be 73 cents per Ccf—about 3 percent lower than last winter when it was 75 cents per Ccf. But for customers in Rolla, Salem and Owensville, the PGA will be 84 cents per Ccf—a 35 percent reduction from January 2010 when the PGA was $1.30 per Ccf.
Ameren Missouri is required to file a request for a new PGA once a year—to become effective Nov. 1, which is traditionally the start of the winter heating season. Because the cost of gas from its suppliers can vary significantly throughout the year—both up and down—Ameren Missouri may also request up to three additional PGA changes per year if the effective dates of these changes are at least 60 days apart.
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Contacts: Mike Cleary, 573-681-7137, mcleary@ameren.com
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 57 counties and 500 towns, including the greater St. Louis area. For more information, visit AmerenMissouri.com.