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Purchase Gas Adjustment

The major portion of your monthly gas bill reflects the cost of the natural gas we purchase to supply our customers, as well as the cost of storing and transporting that gas. The wholesale gas cost fluctuates periodically because it is established by a deregulated, competitive marketplace. Through a Purchased Gas Adjustment (PGA), increases and decreases in these gas costs are periodically passed through to our customers. Laclede does not "mark up" these wholesale gas costs.

To maintain the PGA at as low a level as possible, we seek cost-efficient, yet adequate and reliable supplies of natural gas to meet your current and future needs. In addition, our company and the Missouri Public Service Commission often intervene in rate change applications made by the pipeline companies in an effort to reduce increases sought in the price of natural gas. To learn more about Laclede’s efforts to maintain fair and reasonable pricing, click here.

On November 10, 2010, the Missouri Public Service Commission (MPSC) approved our request to lower our gas costs compared to last year due to reduced gas supply costs, which the Company is required to flow through to its customers. The change goes into effect on November 16, 2010, putting our rates at their lowest levels in six years.

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