Missouri Gas Energy increasing rates in March

Customers of Missouri Gas Energy will soon see an increase in their monthly bills.

MGE received approval Thursday from the Missouri Public Service Commission to raise natural gas rates by roughly 2.4 percent. The increase, which will increase annual revenues by an estimated $16.2 million, will increase the average residential customer's bill by $2.26. The rate increase is expected to take effect in March.

The decision requires the utility to invest at least $1.5 million a year in new energy efficiency programs, according to a news release from the MPSC. The funding level will increase to a goal of 0.5 percent of gross operating revenues, used to fund Energy Star programs, appliance rebates, weatherization and programmable thermostats.

"Rate increases are never welcome, but with this unanimous vote of the commission, MGE's customers can be assured that the costs approved for recovery are prudent and necessary to provide reliable service," commission Chairman Robert Clayton said in the release. "Additionally, customers will benefit from a renewed commitment to energy efficiency and they should expect to see new, innovative programs to empower customers to reduce their energy usage."

MGE's initial rate request sought to increase annual natural gas operating revenues by approximately $32.4 million, or 4.7 percent. That would have increased the monthly natural gas bill for residential customers by $5.21.

Missouri Gas Energy serves 512,000 natural gas customers in western Missouri.[[In-content Ad]]