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, Summit Natural Gas of Missouri customers will see natural gas rates decrease under a filing that took effect Nov. 21.
The ACA factor is a mechanism which tracks any overcollection or undercollection of actual natural gas costs over a 12-month period, explained officials with the Missouri Public Service Commission. The net over- or undercollected balances are subsequently either refunded or collected the next year.
In Rogersville and Branson Divisions, residential customers currently pay about $1.40 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will decrease to approximately $1.12 per Ccf. According to the Summit Natural Gas filing, the proposed change will decrease the average winter month residential gas bill by about $24.83, representing a 20.03% decrease for the average month in the heating season.
The Rogersville Division includes the communities of Ava, Norwood, Mtn. Grove, Cabool, Houston, Licking, Willow Springs and West Plains.
The cost of natural gas from wholesale suppliers generally makes up about 50% to 55% of a customer’s total monthly natural gas bill. The wholesale cost of natural gas (the cost a local natural gas company must pay to its suppliers for 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. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Summit Natural Gas serves about 19,650 natural gas customers in the Missouri counties of Harrison, Daviess, Caldwell, Pettis, Benton, Morgan, Camden, Miller, Greene, Webster, Laclede, Wright, Douglas, Texas, Howell, Stone and Taney.