CU to seasonally adjust rates downward

City Utilities of Springfield customers can expect to see a dip in their fuel and natural gas costs starting in October.

Customers will pay approximately $5.70 per 1,000 kilowatt-hour less for fuel during the months of October through March, compared to the same period a year earlier. Also, residential customers using average volumes of natural gas would pay $1.12 less per month based on expected residential customer usage, according to a news release.

“Every six months, we true up fuel costs from what was projected to what was actually used,” said CU spokesman Joel Alexander.

Part of CU’s process to align projected fuel costs used to produce electricity for customers with actual fuel costs, the adjustment happens semi-annually. Natural gas prices are adjusted monthly to match projected prices for the fuel, and twice a year the rates are realigned through the recovery adjustment, according to the release.

CU customer rates already dropped once this year, with customers paying roughly $1 less per month toward the cost of electric service from April through September. Natural gas customers using the average volume also saw a drop of around $1.22 less per month during that period, according to Springfield Business Journal archives.