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Wednesday, November 13, 2013

NATURAL GAS PRICES INCREASE


 
 JEFFERSON CITY— To reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment (ACA) factor, Liberty Utilities customers will see natural gas rates change under a filing that takes effect on November 14, 2013.
 
     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.  
 
     West District (Butler, Rich Hill/Hume): Residential customers currently pay approximately $0.45 per Ccf of natural gas. Under this filing, the rate will increase to approximately $0.49 per Ccf, an increase of approximately $0.04 per Ccf. Liberty Utilities serves West District customers in the Missouri counties of Bates, Cass, Henry and St. Clair.   
 
     Approximately 55% to 60% of a customer’s 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.
 

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