The Missouri Public Service Commission regulates investor-owned electric, steam, natural gas, water and sewer and telephone companies. Its mission is to ensure Missouri consumers have access to safe, reliable and reasonably priced utility service while allowing those utility companies under our jurisdiction an opportunity to earn a reasonable return on their investment. The PSC also regulates manufacturers and retail dealers who sell new and used manufactured homes and modular units. The commission was established in 1913. The PSC is comprised of five commissioners, who are appointed by the governor.
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PR-08-132 -- Agreement In Missouri Gas Utility Rate Case Approved By Public Service Commission
Contact: Gregg Ochoa (573) 522-2760
FOR IMMEDIATE RELEASE -- MARCH 20, 2008
JEFFERSON CITY—The Missouri Public Service Commission has accepted an agreement between the staff of the Missouri Public Service Commission, the Office of the Public Counsel and Missouri Gas Utility, Inc. (MGU) which resolves all issues in a natural gas rate case filed by MGU in August of last year.
The agreement will allow MGU to increase annual non-gas operating revenues by approximately $301,000. “This revenue requirement is concluded to be no more than is sufficient to keep MGU’s utility plants in proper repair for effective public service, and insure to MGU’s investors a reasonable return upon funds invested,” said the commission. When the company filed its request on August 29, 2007, it sought an increase of approximately $443,100.
The agreement approved by the commission calls for a three year rate moratorium through April 1, 2011.
New rates under the agreement will take effect after tariffs are filed, and will result in an increase of approximately $16 a month for a residential customer using approximately 800 Ccf (80,000 cubic feet) of natural gas a year.
Under the terms of the agreement, MGU will make an annual contribution of approximately $9,000 to either the Green Hill Community Action Agency to promote conservation of natural gas usage for natural gas space heating customers or spend the same amount through a commission-approved program for the same purpose.
The natural gas company will also make a one-time contribution of $3,717 to the Green Hill Community Action Agency to promote conservation of natural gas usage. That contribution will be made within 30 days of the effective date of new rates approved under the agreement.
The rate case filed by MGU generally involved what are called non-gas costs. Non-gas costs include operating and maintenance expenses and a return on investment in plant (such as natural gas mains and service lines that carry natural gas to the customer’s home or business). Rates charged to MGU from wholesale suppliers for natural gas are not regulated by the Missouri Public Service Commission. Gas costs typically make up between 60 and 75 percent of a customer’s total monthly natural gas bill.
MGU provides natural gas service to approximately 1,000 customers in the communities of Hamilton, Gallatin, Jameson and Coffey in Caldwell and Daviess counties.
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Case Nos. GR-2008-0060 & GR-2007-0178