Missouri Gas Energy customers to see rates increase

Thursday, July 1, 2010 | 3:16 p.m. CDT; updated 3:51 p.m. CDT, Friday, July 2, 2010

CORRECTION: AmerenUE is the third largest natural gas distributor in Missouri. A previous version of this story misstated its amount of distribution.

COLUMBIA — The Missouri Public Service Commission approved a request from Missouri Gas Energy yesterday to raise MGE's gas rates for the remainder of the summer. Beginning July 8, residential customers will see a 12 cent increase per hundred cubic feet to a new rate of about 82 cents per hundred cubic feet. 

MGE determined it needed to raise rates because the cost of wholesale natural gas has increased in recent months. The wholesale cost of gas is unregulated and fluctuates based on availability and factors such as weather.

The wholesale cost of gas is only part of a customer’s bill – the rest comes from delivery and storage of the gas by companies such as MGE.

To reduce the financial impact of the rate increases, customers can visit Be Energy Efficient, a joint website of the PSC and the Missouri Department of Natural Resources.

AmerenUE, the third largest* natural gas distributer in Missouri, filed an application for a 9.8 percent delivery rate increase on June 11, spokeswoman Lisa Manzo said. AmerenUE's request is still pending approval by the PSC. If approved, AmerenUE customers are estimated to see bills increase 9.8 percent.

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