Oct. 30--Natural gas rates will increase for St. Joseph customers starting Sunday, but overall heating bills will be lower compared to last winter, the Missouri Public Service Commission said.

Missouri Gas Energy is increasing the wholesale cost of natural gas for its customers, including those in St. Joseph, from 54 cents per hundred cubic feet, or CCF, to 70 cents. That's a 29-percent increase from the summer rate to the winter rate, but it's still lower than the overall rate in the winter of 2008-2009.

The PSC, which regulates MGE and other investor-owned utilities, said the average MGE customer is expected to pay $555 for natural gas heating from November to March. Last year, the average customer paid $709.

The wholesale cost of natural gas, which MGE passes straight to customers, makes up 65 percent to 75 percent of the typical monthly bill.

Tom Imhoff, supervisor of the PSC staff's energy department, said natural gas costs are lower this winter because of several factors, including a calm hurricane season in the Gulf Coast and lower overall energy costs throughout the summer.

He said the cost of heating your home could change this winter due to two reasons: MGE can pursue another wholesale rate adjustment in January, and a proposal for a general rate increase is pending with the PSC.

-----

To see more of the St. Joseph News-Press or to subscribe to the newspaper, go to http://www.stjoenews-press.com/.

Copyright (c) 2009, St. Joseph News-Press, Mo.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.