To reflect estimated changes in the wholesale cost of natural gas, customers of Summit Natural Gas of Missouri in Camden, Miller and Morgan counties will see natural gas rates drop under a filing with the Missouri Public Service Commission that takes effect Tuesday.
Residential customers currently pay approximately $1.01 per hundred cubic feet of natural gas. Under this filing, the rate will decrease to approximately 91 cents.
The cost of natural gas from wholesale suppliers generally makes up approximately 50-55 percent of a customer's monthly natural gas bill. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the PSC.
The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The PSC does conduct an annual regulatory review to ensure regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.