Laclede works hard on behalf of its customers to keep natural gas rates reasonable. It is able to meet this goal through the utilization of several important strategies:
Hedging Program – Through its aggressive gas supply risk management program, Laclede is able to “hedge” or lock in approximately 70 percent of its normal gas purchases, effectively controlling price spikes that could negatively impact our customers. Click here to learn more.
Storage Program – Laclede’s natural gas storage program is another form of “hedging” against price spikes. By buying natural gas supplies during the cooling season when prices are typically lower and storing those supplies in underground facilities, Laclede is able to pass those savings on to its customers. Click here to learn more.
Purchased Gas Adjustment (PGA) – The PGA is the rate that Laclede charges its customers to recover its cost of gas - including gas supply, pipeline transmission and storage costs. It constitutes the major portion (approximately 2/3) of a customer’s gas bill. This cost is passed directly through to customers, meaning that customers pay what Laclede pays. Since it is a commodity, natural gas costs periodically fluctuate. Per the Missouri Public Service Commission (MPSC), Laclede has the ability to adjust the PGA four times a year, yet must make an adjustment annually. To keep the PGA as low as possible, Laclede seeks cost-efficient yet adequate and reliable supplies to meet current and future demand. In addition, Laclede and the MPSC often intervene in rate change applications made by pipeline companies in an effort to reduce increases sought in the price of natural gas.
Promoting Energy Efficiency – Laclede actively promotes the efficient use of natural gas. After all, according to experts such as the American Council for an Energy-Efficient Economy, the Natural Resources Defense Council and others, even a modest reduction in energy usage has significant effects on natural gas prices and volatility. In essence, when you use less, not only does your bill stay reasonable but the price of gas stays low and manageable. For this very reason, we offer our popular “30 Hot Tips for Using Energy Wisely” and OriginalGreenEnergy.com. Both resources help you minimize your carbon footprint, your energy usage and your energy expenses by helping you identify ways to use natural gas more efficiently.
Continuous Improvement – Laclede has undertaken a variety of continuous-improvement initiatives to improve its operational efficiency, which in turn keeps our expenses in check and helps minimize the impact on rates. From construction work to billing to information technology, Laclede is constantly seeking ways to make all aspects of its operations as cost-effective as possible.
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