PUBLIC HEARING TONIGHT ON AMERENUE RATE HIKE CASE

Staff members from the Missouri Public Service Commission will be on hand at the Osage Community Centre tonight to answer questions from the general public during a PSC local public hearing in the AmerenUE natural gas rate request.

Local public hearings give natural gas customers of AmerenUE an opportunity to comment on the rate hike request currently before the commission. In addition, customers are given a chance to bring any service-related problems to Commission's attention.

Citing substantial investment in new facilities and higher operating costs, AmerenUE, filed a request with the PSC in February of this year, for a 14% increase in natural gas rates for its 106,000 Missouri gas customers.

The proposed new rates, designed to produce an additional $12 million in annual revenue, would result in an average increase of about $9.97 per month for a typical residential customer, using 6,700 cubic feet of gas.

The proposal would not affect the company's electric rates.

AmerenUE states in its application that the proposed increase is necessary to recover the increased operating and maintenance expenses, depreciation and taxes, and the costs associated with the additional investment in natural gas distribution facilities made since the company's last request for a gas rate, in 1997.

AmerenUE officials say the overall costs have increased by more than 20 per cent during that three-year period.

AmerenUE reports that since its last gas rate adjustment it has replaced 40 miles of existing gas piping, largely to comply with state regulations. Among other major improvements during the same period were the installation of 115 miles of new pipes and the introduction of a new automated metering system aimed at improving customer service.

AmerenUE is a subsidiary of St. Louis-based Ameren Corporation. Ameren companies serve 1.5 million electric customers and 300,000 natural gas customers in a 44,500-square-mile area of Missouri and Illinois.

PSC hearings on the requests are being conducted through Aug. 31.

The first hearing was conducted at Wentzville Monday of this week. Only about 10 persons showed up to offer customer comments to the PSC.

Tonight's session will be held in Meeting Room 24B at the Osage Center, 1625 N. Kingshighway, starting at 6:30 p.m.

But, PSC staff members will be on hand at 5:30 to answer questions form the public.