Natural gas rates to drop for MGE customers

* Sheldon residents could see smaller bills soon, PSC says.

Nevada Daily Mail

JEFFERSON CITY--To reflect estimated changes in the wholesale cost of natural gas for the remaining winter season, Missouri Gas Energy customers will see natural gas rates drop by approximately 10 percent under a filing which takes effect on Jan. 10. MGE's original filing contemplated a Jan. 18 effective date.

The change does not apply to Nevada residents, who are now served by Empire Gas; but MGE still serves some customers in Sheldon, El Dorado Springs, and communities to the south of Vernon County such as Lamar.

A residential customer currently pays approximately 88 cents per per 100 cubic feet of gas). Under this filing, the rate drop to approximately 79 cents per 100 cubic feet of gas, a decrease of approximately 9 cents.

According to a press release from the Missouri Public Service Commission, approximately 70 percent 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 well-head cost of natural gas is unregulated and is primarily driven by factors such as 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.

MGE serves approximately 510,000 natural gas customers in western Missouri.