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Lower gas rates forecast for Ameren customers

Lower gas rates forecast for Ameren customers

November 2nd, 2013 in News

Ameren Missouri residential and business customers will pay lower rates for natural gas compared with last winter. The decrease is because of a new purchased gas adjustment approved by the Missouri Public Service Commission. The lower rates are the result of lower wholesale costs.

Customers in Jefferson City, Columbia, Mexico, Wentzville, Cape Girardeau and Marble Hill will benefit from a 3 percent decrease in the PGA. They will pay an average of $.65 per one hundred cubic feet of natural gas, which includes the cost of interstate transportation, leased storage and the natural gas commodity.

Monthly bills are based on the actual amount of natural gas used by a customer.

The PGA reflects the wholesale cost of natural gas, plus the cost of transporting gas to the company's system. The cost reduction is passed on to the customers through the PGA without a markup in price. Wholesale gas prices aren't regulated and an increase or decrease is based on market conditions of supply and demand.

Wholesale costs change daily, while the PGA doesn't. The PGA also includes an adjustment to compensate for under or over collection of actual costs in previous periods.