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PGA Explanation

The Purchased Gas Adjustment (PGA) is the rate that Laclede charges its customers to recover Laclede's cost of gas including gas supply, pipeline transmission and gathering and contract storage costs. Laclede's tariff on file with the Missouri Public Service Commission (MPSC) provides that, subject to approval by the MPSC, Laclede will adjust its PGA, each November and Laclede may adjust its PGA up to three other times during the year, so long as only one PGA adjustment becomes effective in any two consecutive calendar months. Laclede's PGA changes reflect changes in the Company's cost of gas, most of which is market driven. Laclede does not incur any profit or loss by the operation of the PGA.

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