KANSAS CITY, Mo. — Missouri Gas Energy has filed with the Missouri Public Service Commission to reduce its Cost of Gas (the wholesale price of natural gas plus interstate transportation and storage costs) from the current $0.60470 per hundred cubic feet (Ccf) to $0.56529 per Ccf.
This represents a reduction of $0.03941 per Ccf or approximately $32 per year for the average MGE customer. The new Cost of Gas rate is expected to receive approval from the MPSC and will take effect April 1.
“This is something we do every year,” said Jason Fulp, spokesman for MGE. “In the summer, our demand goes down so we reduce our price and in the winter, demand goes up, so our costs increase and the price increases.”
Cost of Gas rate changes reflect changes in the market price of wholesale natural gas, and interstate pipeline, transportation and storage fees as well as reconciliation of past over- or under-recovery of such costs. Missouri Gas Energy does not earn a profit on the wholesale price of natural gas, but only on its delivery.
The Cost of Gas charge typically accounts for about two-thirds to three-fourths of a winter bill and is typically adjusted in April and November, with two additional adjustments available if needed.
• Missouri Gas Energy is a natural gas distribution company headquartered in Kansas City, Mo. with facilities in St. Joseph, Lee’s Summit, Warrensburg, Joplin, Republic, Neosho and Monett. MGE serves over half-million customers in 155 western Missouri communities and is a division of Southern Union Company, a subsidiary of Energy Transfer. Its business is regulated by the Missouri Public Service Commission.
About Southern Union Company
• Southern Union Company, a subsidiary of Energy Transfer, is headquartered in Houston and operates one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with approximately 20,000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals, along with serving more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit www.sug.com.