Natural gas rate rises 18 percent

JEFFERSON CITY — Central Missouri ­Ameren UE customers will pay approximately 18 percent more for their natural gas this month after the Missouri Public Service Commission signed off on the higher rate — effective Nov. 1.

Ameren Communications Executive Mike Cleary said the increased rate reflects the higher unregulated wholesale cost of natural gas. “All of this money goes to our suppliers to pay for the gas that we provide to our customers,” Cleary said.

Ameren serves customers in eastern areas of Boone County.

The Missouri Public Service Commission reviewed Ameren’s rate adjustment case that was filed on Oct. 14. “The filing made by Ameren UE was thoroughly reviewed by the staff on the commission,” said Kevin Kelly, spokesman for the Missouri Public Commission. “We ensured that the case generally reflects the current market conditions as far as wholesale natural gas is concerned.”

The cost of natural gas from wholesale suppliers accounts for approximately 65 to 85 percent of a customer’s bill, Kelly reported. Under federal law, the Missouri Public Service Commission does not regulate the wholesale cost of natural gas.

Cleary said the average residential consumer in central Missouri can expect an increase of $21.86 per month, which compared to last winter’s rates is an increase of around 17.7 percent. Increased Ameren natural gas rates across the state range from 12 percent to 30 percent. These percentages are based on normal winter conditions.

The wholesale cost has increased mainly due to supply issues from the oil and gas rigs being down or damaged from Hurricane Katrina along the Gulf Coast, Cleary said. He reports that the Gulf Coast accounts for 20 percent of natural gas production for the nation including some production for Missouri. Missouri also receives natural gas from Texas and Oklahoma, Cleary said.

Cleary said it all depends on the weather as to how steep the increase will be for consumers this winter. “Usage is a very big factor in how big your bill will be,” he said.

In addition, the increased rate is subject to increase or decrease depending on the changing market prices from the natural gas suppliers. Cleary said Ameren is allowed to do up to three more filings with the Public Service Commission this year.

Cleary said the rigs being down along the Gulf is a temporary happening. “Eventually that damage will be repaired and those rigs will be producing again and that will help improve supply,” he said. “That should cause prices to moderate somewhat.”