Ameren Missouri has asked state regulators for permission to once again increase gas rates. The price adjustment would bring in nearly $40 million more per year. If approved, the gas rate increase would take effect in fall, increasing the average customers’ bill by an estimated $16 per month.
Ameren provides gas service for communities throughout the state, including Columbia and Jefferson City.
Ameren filed a gas rate increase request in September and public hearings are taking place this month, including a sparsely-attended hearing in Jefferson City Monday.
Ameren Missouri is also going through the rate case process to increase prices for its electric customers by an estimated $17.45 per month for the average customer.
Steve Wills is Ameren’s senior director of regulatory affairs and said rate increases are necessary to recoup the cost of infrastructure upgrades and maintenance — including upgrades to gas meters.
“The electric and the gas systems are both obviously independent systems that require the investments to keep them running reliably and safely for our customers,” Wills said.
Ameren Missouri is “expanding and modernizing the natural gas supply line” and upgrading gas meters for all customers to “provide them with detailed information they can use to manage their energy usage,” according to the company’s website.
The actual cost of gas is not included in this case. Instead, the money is for operation and maintenance expenses. The company also asserts many of the communities it serves are gaining new residents and businesses, all of which require gas service.
“We have seen significant growth on certain parts of our system that were requiring upgrades in our capacity to serve new customers,” Wills said.
Ameren Missouri’s last gas rate increase was for 6% and took effect in 2022.
Utilities are what’s called “regulated” or “natural” monopolies — in exchange for being the sole provider of utility service in a specified area the companies are subject to state oversight.
In order to raise the prices charged to customers, the companies must file a rate case with the Missouri Public Service Commission — the state agency that regulates utilities.
The staff of the Missouri Public Service Commission made a preliminary recommendation to the five regulators for an overall annual increase to Ameren Missouri’s gas rates of $30.3 million — $9.3 million less than the company requested.
“The Commission must balance the interests of the public — ratepayers — as well as company shareholders,” said case documents from the state agency.
Two more virtual public hearings in Ameren Missouri’s gas rate case are scheduled for April 24.
