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, Union Electric Company d/b/a Ameren Missouri natural gas customers will see rates change under a filing that took effect on Nov. 1.
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. Residential customers currently pay approximately $0.35 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will increase to approximately $0.38 per Ccf, an increase of approximately $0.03 per Ccf.
Approximately 50 percent to 55 percent of a customer’s current 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. Ameren Missouri serves approximately 132,350 natural gas customers in the Missouri counties that include Gasconade and Montgomery.