Tariffs reflecting the Missouri Public Service Commission’s Nov. 12 decision in a Spire Missouri, Inc. rate case will take effect on Dec. 23, 2021. Those tariffs reflect a net increase in Spire’s annual natural gas operating revenues of approximately $24.9 million.
When Spire filed a rate request with the Missouri PSC on Dec. 11, 2020, it sought a net increase in its annual distribution rates of approximately $65 million.
According to the PSC Staff, a residential customer using 100 cubic feet of natural gas in a winter month will see an increase in the monthly natural gas bill of approximately $8.12 a month in the Spire West service area, which includes much of Christian County.
This rate case generally reflected “non-gas” costs. Non-gas costs are operating and maintenance expenses that a company takes on in providing natural gas to customers in a safe and useful form. It also includes a return on investment in infrastructure, such as meters, mains and service lines that deliver natural gas to homes or businesses. The actual cost of the natural gas is not a part of the Spire rate case.
The wholesale cost of natural gas is unregulated. The Missouri Public Service Commission reviews the natural gas purchasing practices of Spire to ensure prudent decisions are made in securing natural gas supplies for its customers. In this case, the Commission approved agreements reached by several parties which resolved a number of issues. Under the agreements:
-Spire East and Spire West will remain as separate rate districts. When Spire filed its rate case, it sought, to the extent possible, to consolidate the rate structures of its two service areas. There will be no change to the residential monthly customer charge. It will remain at $22 a month for residential customers of Spire East and $20 a month for residential customers of Spire West.
-Spire will target income-eligible energy efficiency programs in part toward multi family homes with high energy burdens and/or high arrearages.
-Spire’s Low-Income Energy Affordability Program will change its name to Payment Partner Program. The agreement provides for automatic customer referrals to energy efficiency programs and expansion of program eligibility from 185 percent of Federal Poverty Level to 200 percent. Annual funding for the Payment Partner Program will remain at $1.65 million, plus an additional $650,000 annual contribution from Spire for a total level of funding of $2.3 million.
-Spire will also conduct a three-year pilot program to serve customers with critical medical needs based on the framework originally designed by Baltimore Gas and Energy, known as the Maryland Critical Needs Program.
Spire Missouri East provides natural gas service to approximately 654,600 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve. Spire Missouri West provides natural gas service to approximately 522,000 customers in Andrew, Barry, Barton, Bates, Buchanan, Carroll, Cass, Cedar, Christian, Clay, Clinton, Dade, DeKalb, Greene, Henry, Howard, Jackson, Jasper, Johnson, Lafayette, Lawrence, McDonald, Moniteau, Pettis, Platte, Ray, Saline, Stone and Vernon counties.
