Customers of Spire and Liberty should see slightly lower bills this winter.
In a statement, Spire said that its western Missouri residential customers currently pay approximately $1.08 per Ccf (hundred cubic feet) of natural gas will see that rate drop to $1.02 per Ccf.
According to Spire Missouri’s filing with the Missouri Public Service Commission, when compared to existing rates and assuming normal usage, Spire estimates the change will decrease the average monthly bill of the typical residential customer by $3.48, or 3%.
The change took effect Nov. 16.
The impact on the bill will depend on a customer’s actual usage, which is primarily affected by weather.
In a statement, Spire said the new rates reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment factor.
The ACA factor is a mechanism that tracks any over-collection or under-collection of actual natural gas costs over a 12-month period. The net balances are subsequently either refunded or collected the next year.
Spire also said, “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.”
Spire West provides natural gas service to approximately 537,000 customers, including Jasper, Barry, Barton, Lawrence, McDonald and Vernon counties.
Electric customers of Liberty will also see a decrease, effective Dec. 1.
The change will occur in the fuel adjustment clause charge on their electric bills
For a residential customer using 1,000 kilowatt-hours of electricity a month, the FAC will decrease by approximately $2.17 a month.