AMERENUE GAS RATE INCREASES IN EFFECT

JEFFERSON CITY -- The cost of natural gas service for Southeast Missouri customers of AmerenUE jumped significantly Monday under rate hikes approved last week by the Missouri Public Service Commission.

AmerenUE customers in the company's Southeast Missouri district -- Cape Girardeau and Scott counties and part of Stoddard County -- will see rates increase by 54 percent. Rates for customers in the Ozark district -- Butler and Bollinger counties and another part of Stoddard County -- have gone up 75.2 percent.

The increases were unscheduled summer rate changes prompted by the rising wholesale cost of natural gas. AmerenUE is one of several natural gas service providers in the state to request an unscheduled rate hike in recent weeks.

Kevin Kelly, a spokesman for the PSC, said companies file scheduled requests for rate changes in October and April for the winter and summer seasons, respectively. Kelly said companies can also ask for a second winter rate change if wholesale prices change significantly.

AmerenUE also has asked the PSC for a gas rate increase of another 14 percent that would generate an additional $12 million in annual revenue. The PSC plans to hold a public hearing on that request in Cape Girardeau on Aug. 24, one of five scheduled around the state to solicit opinions on the proposed increase. The hearing is scheduled for 6:30 p.m. in the Osage Community Centre.

Staff from the PSC will be available an hour before the start of each of the hearings to answer questions from the public.

With the unscheduled summer filing, AmerenUE can't again change its rates for its Southeast and Ozark district customers until its regular winter filing in October, Kelly said.

Rates for AmerenUE's Southeast Missouri district customers rose on Monday from 33.84 cents per 100 cubic feet of gas to 52.13 cents, an increase of about 18 cents. Rates for Ozark district customers went up nearly 19 cents per 100 cubic feet of gas, from 24.74 cents to 43.35 cents.

A residential customer using 2,800 cubic feet of gas in July will see the bill increase by $5.32 in the Southeast Missouri district and $5.04 in the Ozark district.

According to the PSC, which regulates utilities operating in Missouri, between 60 and 70 percent of a customer's natural gas bill reflects the wholesale cost paid by local service providers. The wholesale price is driven by market forces and is unregulated by the commission.

The factors contributing to the currently high wholesale price of natural gas include high crude oil prices, lower-than-normal natural gas inventories and increased demand.

AmerenUE serves approximately 19,400 customers in its SEMO District and another 2,000 customers in its Ozark District.

mppowers@socket.net.

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