St. Louis-based Laclede Gas Co. yesterday filed a request with the Missouri Public Service Commission to increase a portion of its general rate structure to allow it to recover increased distribution costs for its 633,000 customers in Eastern Missouri. Laclede noted that the proposal would not affect customers’ wholesale gas costs, local gross receipt tax rates or interstate pipeline and storage costs.

If approved, the higher rates would most likely not affect customers until the winter of 2002-2003, Laclede estimated, because the PSC “usually suspends the implementation of generate rate increases until the utility’s filing has been thoroughly audited and reviewed.” Laclede customers were last hit with a general rate increase in December 1999.

Under Laclede’s filing, the increase applies only to the distribution cost portion of a customer’s total bill, which it said was “typically” about one-fifth of the total in the winter heating months. Company officials said the increase was necessary to cover its costs of operating and maintaining its 15,000-mile gas distribution and storage system, and includes the state and federal taxes Laclede pays.

Customers’ bills would on average rise about $4.90 a month, said Laclede, and would apply throughout the company’s system, which includes operating divisions known as St. Charles Gas, Midwest Missouri Gas and Missouri Natural Gas.

The PSC recently approved Laclede’s hedging program, which is designed to offset wholesale prices for customers. The commission is still considering the company’s request for a gas supply incentive program and a weather mitigation proposal. Hearings on the newest proposal have so far not been scheduled.

©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.