PR-08-160 -- AmerenUE Increases Natural Gas Rates By 23%

Average Winter Heating Bills Could Increase By More Than $24 A Month

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MAY 29, 2008

JEFFERSON CITY—More than 120,000 AmerenUE natural gas consumers will see their natural gas rates increase by 23 percent under a filing that takes effect on June 1.  The higher rates are a result of the increase in the wholesale price of natural gas and could end up costing natural gas consumers an extra $24 per month to heat their homes this winter.     

These rates are a product of wholesale natural gas markets exempt from state regulation.  Gas distribution companies purchase gas for consumers and pass these costs directly on to consumers.  These costs typically make up approximately two-thirds of the average residential customers’ natural gas bill.  The PSC annually reviews the purchasing practices of regulated natural gas companies like AmerenUE to insure they are making prudent decisions on behalf of their customers.

AmerenUE residential customers in all of its service areas except Rolla currently pay approximately $0.90 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will increase to approximately $1.10 per Ccf—an increase of approximately $0.20 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will increase from $517 to $636.  This estimated $119 increase will cost natural gas customers an average of $24 more per month for the period of November 1 through March 31. 

For approximately 3,900 natural gas customers in the Rolla service area, natural gas rates will drop due mainly to lower transportation costs.  Residential customers in this service area currently pay approximately $1.35 per Ccf (per hundred cubic feet) of natural gas.  Under this filing, the rate will drop to approximately $1.29 per Ccf—a decrease of approximately $0.06 per Ccf.  Since most natural gas is used during the five-month winter heating season, an average residential customer’s winter gas bill will drop from $678 to $650.  This means an estimated $28 decrease or an average of $5 less a month for the period of November 1 through March 31. 

This is not a problem isolated to Missouri.  Natural gas consumers all over the country can expect similar increases and the PSC is encouraging customers to reduce their energy consumption.  Here are some points to consider:

-- Having the furnace checked and tuned-up if needed and replace furnace filters each month when dirty. 

-- Contacting your natural gas company to ask about budget billing.

-- Adding attic insulation if necessary.

-- Placing weather stripping around doors, using plastic film covering and caulking windows to keep heat from escaping from your home.

-- Having the chimney checked for blockage and closing fireplace dampers when the fireplace is not being used.

-- Setting the water heater temperature to 120 degrees.

-- Please use caution with gas-fired appliances.  Get professional help for any projects that are beyond your personal capabilities.

Other energy saving information can be found on the Missouri Public Service Commission website at www.psc.mo.gov; the Missouri Department of Natural Resources website at www.dnr.mo.gov; or the federal Department of Energy website at www.doe.gov .

            The Missouri Public Service Commission is working with a number of other agencies including community action agencies across Missouri to provide information to consumers on natural gas price impacts and what consumers can do to reduce consumption to hold down winter heating costs.   

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