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-08-82 -- Natural Gas Rates To Change For Missouri Gas Utility Customers
Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- NOVEMBER 16, 2007
JEFFERSON CITY— To reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment (ACA) factor, Missouri Gas Utility, Inc. (Missouri Gas Utility) natural gas customers will experience a decrease in natural gas rates under a filing that will take effect on November 20, 2007.
The ACA factor is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12 month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.
A residential customer currently pays approximately $0.73 per Ccf (per 100 cubic feet of gas). Under this filing, the rate will drop to approximately $0.70 per Ccf (per 100 cubic feet of gas), a decrease of approximately $0.03 per Ccf.
Approximately 65% to 75% of a customer’s natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Missouri Gas Utility serves approximately 834 natural gas customers in the areas of Hamilton and Gallatin, Missouri.
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