This close-to-average Spire natural gas winter bill for usage of 103 CCFs would go up $48.10 (before taxes), from $81.44 to $129.54, due to two rate increases taking effect. On this particular bill, the delivery charges would increase by $8.36, from $39.81 to $48.17. And the gas cost would go up $40.25, from $41.12 (103 x $0.40) to $81.37 (103 x $0.79).
In addition to gas charge increase, PSC approves Spire’s request to raise non-gas charges
Average monthly winter bill to go up $8.12
Spire’s rate increase for operating (non-gas) costs, as approved by the Missouri Public Service Commission, will take effect Dec. 23.
PSC staff figure the average residential customer using 100 CCfs (10,000 cubic feet) during winter months will see an increase of $8.12 per month.
Spire had sought an annual net increase of $65 million. The PSC approved a net increase of $24.9 million. It had also proposed consolidating its Spire East and Spire West divisions, which the PSC denied.
“Non-gas” costs are operating and maintenance expenses plus a return on investment in plant (such as meters, mains and service lines).
The actual cost of the natural gas is NOT a part of this rate case. The wholesale cost of natural gas is unregulated. The Public Service Commission reviews the natural gas purchasing practices of Spire to ensure prudent decisions are made in securing natural gas supplies for its customers.
Customers’ bills are in two main sections: “Delivery Charges” and “Natural Gas Cost.”
The new rate increase will appear in the Delivery Charges section.
The increase announced in November will appear in the Natural Gas Cost section. Primarily because of the February 2021 cold spell, it went up nearly double from $0.40 per CCF to $0.79 per CCF. In other words, the cost of gas for 100 CCF is going up from $40 to $79.
Now, the total average winter-month bill will increase by $47.12 ($39 for gas, $8.12 for non-gas).
The residential monthly customer charge will remain at $20.