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Ameren Illinois Says Gas Prices to Remain Steady for Upcoming Winter

Ameren Illinois says its natural gas customers can expect to pay about the same for gas this winter as they did last year.

Ameren spokesman Leigh Morris said they estimate gas prices to continue at their current level. The gas delivered by the utility averages about $0.61 per term last winter --- and Morris said the average this winter should be $0.62 per therm. He said that would continue a pattern of moderate natural gas prices that's been going on for about three years.

"It's pretty much been fueled by sluggish economies, soft worldwide demand for energy in all forms, and then a little more recently, the discovery of tremendous supplies of natural gas in shale formations right here in the United States and Canada," Morris said.

Morris also said that Ameren Illinois has enough natural gas available to meet customer needs even during a tough winter. While Ameren has most of its natural gas supplies hedged or "price-protected" to ensure against market volatility, the price the utility charges for delivering that gas to customers could go up. Morris says their delivery rate has already increased slightly, and could go up again this winter.

"There was a very small increase in the last rate case we had before the Illinois Commerce Commission," Morris said. "There is another rate case before the Commerce Commission now, which will not be decided until January. And I really can't predict what the Commission will do."

If the ICC grants the full rate increase requested by Ameren, Morris said natural gas delivery rates would go up around $4.85 a month for former CIPS customers, and $7.47 a month for former customers of Illinois Power. But Morris said it's more likely that smaller increases would be approved.

Morris said the delivery rate typically makes up about one-third of a customer's natural gas bill, with the rest paying for the gas itself. Morris said Ameren makes its profit on the delivery charge, and simply passes along the cost of the gas itself.

Morris advises customers to visit Ameren's ActOnEnergy.com website to review tips for saving on energy costs. He said customers can enroll in a Budget Billing plan at AmerenIllinois.com to better manage their energy bills.

Categories: Energy
Tags: energy