Based on normal weather, natural gas customers served by St. Louis-based Laclede Gas will see a 35% reduction in their winter heating bills, the company estimates. Laclede, with an estimated 633,000 customers in St. Louis and eastern Missouri, bases its cost estimates on the recent wholesale price projections for the winter period from November through March 2002.

The actual gas costs won’t be available for about a month when Laclede files its winter purchased gas adjustment with the Missouri Public Service Commission, but the company said the lower wholesale gas prices, combined with the cost of storing and transporting the gas supplies to St. Louis through various pipelines, generally account for two-thirds to three-fourths of a residential customer’s total gas bill. Municipal taxes add an average 6% and Laclede’s operating and maintenance costs account for the remainder.

Since last winter, more wells have been drilled for natural gas, and industrial use has decreased, said Laclede. Since the unregulated market works on the principles of supply and demand, prices this winter now “appear to be significantly lower” than last winter. Laclede has been able to fill its own storage capacity in preparation for the winter at prices that are about one-third lower than a year ago.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.