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, natural gas customers of The Empire District Gas Company will see natural gas rates change under a filing that takes effect on December 4, 2019.
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.
In the South System, residential customers currently pay approximately $0.40 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will decrease to approximately $0.32 per Ccf- a decrease of approximately $0.08 per Ccf. The Empire District Gas Company stated in its filing that a residential customer using 600 Ccf of natural gas over the upcoming winter season of November through March should see a decrease in natural gas costs of almost $45. The South System includes the cities of Lexington, Marshall and Sedalia in the KMMO listening area.
Approximately 50 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 conducts an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
The Empire District Gas Company serves approximately 43,000 natural gas customers in Missouri.