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Ameren gas rates will be a bit lower this winter

Ameren gas rates will be a bit lower this winter

October 29th, 2010 in News

All of Ameren Missouri's 127,000 natural gas customers will pay a lower price for natural gas this winter than last under a new Purchased Gas Adjustment (PGA) approved by the Missouri Public Service Commission and effective Nov. 1.

In a press release, Ameren Missouri cited lower costs from its suppliers due to lower demand and lower transportation costs, as the reasons for this winter's lower price to customers.

For most residential customers, the savings will average about $1.60 per month during the winter heating season of November through March.

The lower transportation charges resulted from a settlement reached with MoGas Pipeline LLC in a transportation rate case before the Federal Energy Regulatory Commission.

The PGA reflects the wholesale cost of natural gas from Ameren Missouri's suppliers, plus the cost of transporting that gas to the Ameren Missouri system. Wholesale gas costs are not regulated and go up or down based on market conditions of supply and demand. Since these wholesale costs are volatile and can vary widely throughout the year, the PGA also includes an adjustment to compensate for any under- or over-collection of actual costs in previous periods. Ameren Mis- souri passes these costs on to customers, dollar-for-dollar, through the PGA without any "markup" in price. Ameren Missouri makes no profit from the PGA.

For residential customers, the PGA accounts for about two-thirds of a customer's total gas bill, excluding taxes.

Ameren Missouri is required to file a request for a new PGA once a year, to become effective Nov. 1, traditionally the start of the winter heating season. Because the cost of gas from its suppliers can vary significantly throughout the year, both up and down, Ameren Missouri may also request up to three additional PGA changes per year if the effective dates of these changes are at least 60 days apart.