AmerenUE lowers natural gas rates
Rates are still expected to be $10 more per month compared to last year.
Published Oct. 28, 2008
About 39,000 Columbia and Boone County residents will see a decrease in their natural gas bills starting on Nov. 1, though the new rates will still be higher than those of last winter.
On Thursday, the Missouri Public Service Commission approved AmerenUE's proposal to decrease its rates in accordance with lower wholesale costs of natural gas.
AmerenUE is Columbia's sole supplier of natural gas and the third largest supplier in Missouri. About 127,000 customers across the state will be affected.
For most residents, rates will be lowered from the current $1.10 per hundred cubic feet (Ccf) of gas to 99.5 cents Ccf, AmerenUE spokeswoman Susan Gallagher said. This averages to a $6 decrease on monthly bills compared to the prices set on June 1, but it is still $10 more per month compared to last winter.
Customers in Rolla, Salem and Owensville will see a decrease of about $3.80 per month compared to current prices.
The rate change reflects market price decreases in wholesale natural gas, which have fallen to less than half their value from a peak in early July.
"We are seeing declines in pretty much all energy prices," said Kerry Cordray, Missouri Department of Natural Resources' Energy Center spokesman. "A lot of that can be attributed to the slowdown in the economy, and what that does is lower the demand for energy."
However, the new rate is still about 11 cents higher than last winter's rate of 89.59 cents Ccf. To consumers, this translates to an average of $45 to $51 more in energy costs compared to last winter, according to the Missouri Public Service Commission.
AmerenUE officials estimate natural gas bills this winter of around $141 per month, with possibly higher costs if the winter is especially cold.
Electric rates will not be affected.
About 65 to 75 percent of the gas rate for consumers is based on the company's supplier costs, so this change could significantly affect consumers' bills, Gallagher said. Rates are also dependent to a lesser extent on delivery costs.
"We pass our supplier costs on dollar for dollar, so when our costs decrease we decrease our rates too," Gallagher said.
Kevin Kelly, public information administrator of the Missouri Public Service Commission, said other utility companies are also assessing their rates.
Missouri Gas Energy, a Kansas City-based utility, is also cutting its natural gas rates starting on Nov. 1, Kelly said. At least 400,000 MGE customers will see 9 percent decreases in rates.
The commission oversees seven Missouri utility companies, and Kelly said he anticipates that customers of other companies will be seeing decreased rates as well.
