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January 05, 2006
ST. LOUIS, MO, January 5, 2006 — Laclede Gas Company today filed a Purchased Gas Adjustment with the Missouri Public Service Commission to lower its existing rates by 7%, before any additional reduction in the amount of local taxes that would otherwise be applicable to the customer’s bill. This filing will reduce by nearly 30% the increase that Laclede filed for in November of 2005 to reflect the higher wholesale gas prices in effect at that time.
This decrease reflects a recent as well as anticipated drop in wellhead wholesale natural gas prices since the Company made its Winter PGA filing in November 2005. The wellhead price Laclede must pay to acquire gas supplies in the competitive national market, along with the cost of storing that gas and then transporting it from production fields to Laclede’s service area, normally account for 65% to 80% of a residential customer’s total natural gas bill. The remainder reflects Laclede’s costs of operating and maintaining a safe and reliable 16,000-mile distribution system, as well as gross receipts taxes that the Company collects on behalf of various counties and municipalities.
Assuming Commission approval, effective January 20, 2006, a typical Laclede residential customer would experience a rate decrease during the January through March period of approximately $19 per month, or 7% compared to existing rates.
Laclede Gas, a subsidiary of The Laclede Group (NYSE: LG), is the largest gas distribution company in Missouri, serving more than 630,000 natural gas customers in St. Louis and surrounding counties in Eastern Missouri.
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