Customers who buy their natural gas from Spire are set to see a slight decrease in rate.
The Missouri Public Service Commission announced that Spire’s rates would drop as of Nov. 15 to reflected estimated changes to the wholesale cost of natural gas, along with a change to what is called the “actual cost adjustment (ACA) factor.”
Spire Missouri, formerly Laclede Gas Company, served more than 500,000 Missouri customers, including those in Ozark and other parts of Christian County.
The ACA factor is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12-month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.
Under the filing with the Missouri Public Service Commission, Spire residential customers will see natural gas rates decrease by approximately $0.04 per hundred cubic feet of natural gas, down from approximately $0.52 per hundred cubic feet to approximately $0.48 per hundred cubic feet. Spire stated in its filing that compared to current rates and assuming normal usage, this change would lower the average monthly natural gas bill for a typical residential customer over the upcoming winter by approximately $4 per month.
Approximately 50-55 percent of a customer’s current natural gas bill reflects the cost of natural gas from wholesale suppliers. 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.