The Missouri Public Service Commission reports Spire Natural Gas customers will see rates drop under a filing that takes effect November 15th.
The new rates will reflect estimated changes in the wholesale cost of natural gas and the company’s Actual Cost Adjustment factor. The factor is a mechanism that tracks any over- or under-collection of actual natural gas costs over a 12-month period. The net over- or under-collected balance is subsequently either refunded or collected the next year.
Under the filing, Spire residential customers will see natural gas rates decrease by about four cents per hundred cubic feet of gas from about 52 cents to 48 cents per hundred cubic feet. Spire stated that this change would decrease the average monthly natural gas bill for a typical residential customer over the upcoming winter by about $4 per month, compared to current rates and assuming normal usage.
The Missouri Public Service Commission notes that about 50 to 55% of a customer’s current bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas is not regulated by the Commission. The wellhead cost of natural gas is unregulated and primarily driven by supply, demand, and weather.
The Commission does not conduct an annual regulatory review to ensure regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Spire serves about 513,200 natural gas customers in Missouri, including the counties of Carroll, Clinton, DeKalb, and Ray.