This request reflects a decrease of 10 cents per Ccf, or 14.27 percent compared to the current rate. MGE expects the new cost of gas rate to be approved and go into effect Nov. 1, according to a news release.
Rate adjustments reflect changes in the market price of wholesale natural gas, and interstate pipeline, transportation and storage fees. MGE does not earn a profit on the wholesale price of natural gas, but only on its delivery.
The cost of gas portion of a customer bill is the cost MGE and other distribution companies pay to purchase gas on the open market, plus transportation and storage expenses. The cost of gas charge typically accounts for two-thirds to three-fourths of a winter bill.
Cost of gas rates are typically adjusted in April and November, with two additional adjustments available if needed.
Kansas City-based Missouri Gas Energy distributes natural gas to more than 500,000 customers and operates facilities in Joplin, Republic, Neosho and Monett. It is a wholly owned subsidiary of Houston, Texas-based Southern Union Co.[[In-content Ad]]
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