To reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment factor, Summit Natural Gas of Missouri, Inc. (Summit Natural Gas) customers will see natural gas rates change under a filing that takes effect on November 17, 2022.
The ACA factor is a mechanism that tracks any over-collection or under-collection of actual natural gas costs over 12 months. The net over- or under-collected balances are subsequently either refunded or collected the next year.
Summit Natural Gas’ current ACA period includes costs associated with the February 2021 Cold Weather Event (Winter Storm Uri) which had a significant impact on certain natural gas prices. On November 17, 2021, the Commission approved a request filed by Summit Natural Gas extending the ACA recovery period from 12 months to five years, thereby spreading the costs from Winter Storm Uri over a longer period to mitigate the impact on customers.
Gallatin Division: Residential customers currently pay approximately $0.65 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will increase to approximately $1.16 per Ccf. The proposed change will increase an average winter month residential gas bill by approximately $65.27, representing a 36.26% increase for the average month in the heating season, according to the Summit Natural Gas transmittal letter.
Warsaw and Lake of the Ozarks Divisions: Residential customers currently pay approximately $0.99 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will increase to approximately $1.44 per Ccf. The proposed change will increase an average winter month residential gas bill by approximately $25.51, representing a 19.77% increase for the average month in the heating season, according to the Summit Natural Gas transmittal letter.
Rogersville and Branson Divisions: Residential customers currently pay approximately $0.99 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will increase to approximately $1.40 per Ccf. The proposed change will increase an average winter month residential gas bill by approximately $39.35, representing a 20.85% increase for the average month in the heating season, according to the Summit Natural Gas transmittal letter.
The cost of natural gas from wholesale suppliers generally makes up approximately 50% to 55% of a customer’s total 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 Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand, and the weather. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Summit Natural Gas serves approximately 19,400 natural gas customers in the Missouri counties of Harrison, Daviess, Caldwell, Pettis, Benton, Morgan, Camden, Miller, Greene, Webster, Laclede, Wright, Douglas, Texas, Howell, Stone, and Taney.
