As expected, Missouri Gas Energy’s new owners today filed a general rate case with the Missouri Public Service Commission.

Officials with Laclede Gas Company say Missouri law requires that natural gas companies regularly file general rate cases with the commission in order to continue recovering funds invested in distribution system upgrades.

The deadline for MGE to file is this week. This rate case was filed based on meeting this legislative requirement and is unrelated to Laclede’s recent purchase of MGE. They closed on that purchase two weeks ago. (click here for more)

MGE operates and maintains more than 14,000 miles of pipeline – that’s enough to stretch from Kansas City to Beijing, China and back. This general rate case provides for the investments made in these pipelines and for operating the natural gas delivery system across western Missouri.

The rate case filing pertains to the 40 percent of a typical customer bill that covers the cost of delivering natural gas and pipeline upgrades. This case does not impact the rest of the bill which covers the cost of the natural gas itself. Gas is covered under a separate rate labeled “Cost of Gas” on a customer’s bill. Due to historically low natural gas prices, MGE filed to decrease this rate last April by $2.66 per month based on average customer usage.

If approved in its entirety, an average MGE residential customer would see a net increase of $2.33 per month, above amounts currently being collected in rates.The proposed new rates would provide net additional revenues of $17 million. On an inflation-adjusted basis, customers would still be paying less for natural gas service than they paid a decade ago. The Public Service Commission may take up to 11 months to resolve the case. This means customers will likely not be impacted by any general rate increase until after this year’s winter heating season.

“We’d prefer not to file a rate case on the heels of welcoming MGE’s employees and customers into the Laclede family. It’s necessary in order to meet legal requirements to continue funding MGE’s pipeline infrastructure upgrades. While filing to recover upgrades is the primary driver on timing, costs included in the general rate case are also related to the general operation of our business in western Missouri,” said Steve Lindsey, president of Laclede Gas Company.