Empire District Gas customers will see a change to gas rates next month.

A press release from the Missouri Public Service Commission says the new rate change is 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. 

The rate change takes effect December 1, 2017.

The Public Service Commission noted 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 in the area currently pay approximately $0.52 per Ccf (per
hundred cubic feet) of natural gas.

Under the new rate filing, prices will increase to approximately $0.57 per
Ccf; which is an increase of 5 cents The South System includes the cities of Sedalia, Clinton, Marshall, and Lexington.

The Commission says nearly 55% to 60% of a customer’s current natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of 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, according to the press release.

The MO Public Service Commission said annual regulatory reviews are conducted in an effort to ensure regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.

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