AmerenUE has received its first delivery rate increase in more than three years and only its third bump since 1987. The Missouri Public Service Commission (MPSC) on Jan. 13 approved a settlement authorizing the new natural gas delivery rates, which will increase the utility’s operating revenues by $13 million annually.

A typical residential customer who heats with natural gas will see an average monthly increase of about $6.55 or 10.2%. AmerenUE serves more than 111,000 natural gas customers in Missouri. Ameren Corp. serves a total of 1.7 million electric customers and 500,000 natural gas customers in a 49,000-square-mile area of Illinois and Missouri.

AmerenUE said the agreement does provide some stability for customers during the 2003-2004 winter heating season by deferring inclusion of increases in wholesale costs and ensuring investment in infrastructure improvements and in weatherization and energy efficient equipment programs.

AmerenUE committed to the following provisions under the new agreement:

In addition, the company will contribute $155,000 per year to continue funding a weatherization program developed in collaboration with the MPSC Staff, the Office of Public Counsel and the Missouri Department of Natural Resources. The program provides weatherization services and energy audits for low-income customers. The company will also provide $100,000 in annual funding for a pilot program offering weatherization services and rate relief to low-income customers in the Missouri counties of Stoddard and Scott. Based on the recommendation of the Missouri Department of Natural Resources, AmerenUE will also provide $55,000 per year to fund an energy efficient equipment program.

AmerenUE noted that since its last delivery rate increase in 2000, it has invested more than $50 million to make the natural gas system even more reliable. Since May 1, 2000, the company has replaced about 55 miles of old cast iron pipes and more than 3,000 service lines with polyethylene pipe, largely to comply with state regulations. To accommodate consumer growth on its system, the company has also added about 142 miles of new gas mains and more than 7,000 service connections.

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