Ameren Unit Files Request For Natural Gas Delivery Rate Increase

AmerenUE is seeking an $11 million increase from its Missouri customers to cover operating costs.

AmerenUE, a subsidiary of Ameren Corp., filed a request with the Missouri Public Service Commission (MoPSC) for an $11 million increase in natural gas delivery rates for its 125,000 Missouri gas customers. 

Delivery rates account for about one-third of the total natural gas bill, so the requested 18.3 percent increase would result in a 6.4 percent increase in total gas revenues and about a $6 per month increase for customers.

AmerenUE is seeking to recover the more than $40 million in expenses from gas system improvements and expansions since 2003.

“Since July 1, 2003, AmerenUE has replaced about 70 miles of old cast iron and unprotected steel gas mains and more than 3,300 service lines with modern polyethylene pipe, largely to comply with state regulations,” said Gary L. Rainwater, chairman, president, and chief executive officer, of Ameren. “In addition, we have added about 215 miles of new gas mains and more than 10,000 service connections to accommodate new growth.  AmerenUE customers are receiving the benefits of the expenditures, but current rates do not reflect these higher costs.”

AmerenUE is also looking to equalize the way the Purchased Gas Adjustment (PGA) is calculated for its customers. PGA currently differs among the four regions where AmerenUE provides service due to differences in pipeline suppliers in those areas.

“The purpose is to more effectively integrate our centralized gas purchasing and price-hedging strategies that are designed to reduce price volatility in the cost of gas from our suppliers,” Rainwater said.

A decision is expected no later than June 2007.

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