St. Louis-based natural gas firm sues the city of Springfield

A St. Louis-based natural gas firm is suing City Utilities of Springfield as a unit of the city government, alleging that CU’s sale of natural gas services to customers in Christian County’s Marabella development constitutes “unlawful encroachment” on its service territory.

Spire Missouri Inc., a subsidiary of Spire Inc. (NYSE: SR), argues in a 12-page lawsuit petition filed June 9 in Greene County Circuit Court that the land on which the Marabella development sits is outside of City Utilities’ state-mandated natural gas footprint.

Spire argues that the disputed area, consisting of roughly 700 homes, was assigned to it long before Marabella was developed.

In its lawsuit, Spire attorneys note thatthe Missouri Public Service Commission assigned Spire the right to sell natural gas to customers on that land in a May 15, 1986, certificate of convenience and necessity, or CCN. As defined in the lawsuit petition, a CCN is a regulatory permit issued by the commission authorizing a utility to construct, install, operate and maintain a natural gas system in a particular land area.

In the lawsuit, Spire argues that when it applied for the CCN in the 1980s, no party opposed its application to the MPSC. That application was made by Kansas Power and Light Co.’s KPL Gas Service, which Spire acquired in 2013, according to the lawsuit.

Spire argues that in keeping with state regulations, it has approved tariffs – official documents cataloging a utility company's rates, rules, regulations and territory areas, according to the MPSC website – on file with the commission that “carry the force and effect of law.”

Meanwhile, for City Utilities, which is owned by the city of Springfield, “no statutory authority exists for extending natural gas service beyond the municipality’s limits to serve non-residents,” Spire’s attorneys said in the lawsuit petition.

“We are aware of the lawsuit but have not been formally served,” CU’s legal team said in a written statement provided to Springfield Business Journal late yesterday. “We do not provide comment on ongoing litigation.”

In its lawsuit, Spire argues that the commission’s policy regulates competition and applies equally to municipally owned utilities where they seek to operate outside of city limits in competition with other regulated utilities.

Attorneys for Spire are asking the court to issue a judgment compelling CU to “forfeit and transfer” to Spire “any and all of its natural gas infrastructure and facilities” needed to provide gas service to residents of the Marabella disputed area.

They are also asking for a cease and desist order against CU from “any efforts to provide natural gas service” in the disputed area. Additionally, the company seeks a preliminary injunction and a permanent injunction that would keep CU from soliciting or connecting natural gas customers in Marabella.

The company also wants the court to declare that CU “never has had any right” to provide natural gas services in the disputed area or anywhere in Missouri where Spire holds a CCN.

It also seeks attorneys’ fees and expert fees for the lawsuit.

“Spire has filed legal action against City Utilities of Springfield to address encroachment into Spire’s service areas that are certificated by the Missouri Public Service Commission,” said Spire spokesperson Jason Merrill in a written statement provided to SBJ late yesterday. “We believe our actions are necessary to uphold the commission’s regulatory framework designed to protect customers and to ensure fair, orderly utility service across Missouri.”

A summons was filed for the city of Springfield on June 10, Missouri online court records show. As of 8 a.m. today, the online case file showed no public hearings scheduled as yet.

Marabella’s preliminary plat was approved by the Ozark Board of Aldermen in November 2025, according to past SBJ reporting. It is a roughly 229-acre mixed-use development located east of the James River Church campus in Ozark.

The development comprises 789 dwelling units including apartments, single-family homes and town houses, along with 10 commercial lots and amenities like trails, sports courts, a clubhouse and a 6,000-square-foot pool, past reporting shows.