Ameren customers to see slight increase in utility bill anually

For the past few years, natural gas customers have benefited from lower costs on their utility bills. But starting this month, the U.S. Energy Information Administration predicts that due to an increase demand for natural gas, the price on the wholesale market will be on the rise.

Starting Nov. 1, mid-Missourians who use natural gas through Ameren started to see a .50 cent increase on their monthly utility bills. Ameren Director of Missouri Gas Operations Mike Holman said that increase is within the cost of natural gas, not the cost of delivery. The commodity and delivery charge has not increased since 2011 and is not currently expected to increase.

The amount Ameren pays for gas on the market is called the purchased gas adjustment (PGA) and “we’re allowed to change that four times a year,” said Holman. The PGA makes up about 60 percent of a customer’s monthly gas bill.

Historically, Holman said Ameren does not usually change the PGA four times a year but it does file with the Public Service Commission at least once if it has to reflect a change in the price, even if the price goes down.

“We’re required to do so in November of each year,” Holman said. “Since 2014, what we buy going forward has been cheaper so customers get the proper adjustment decline in that rate.”

While the slight increase in utility bills won’t amount to more than $6.16, or one percent annually, some low-income families will still struggle with any type of increase.

The Central Missouri Community Action Center helps administer a federally funded program called the Low Income Energy Assistance Program (LIHEAP).

“When you are literally counting every penny and where it goes and where it’s being spent, any increase in expense, whether it be food, clothing, gas, heating costs, have an impact on a family,” said chief program officer Angela Hirsch.

To be eligible for the LIHEAP program, a family must be at least 135 percent of the federal poverty level. A family of four would be making an annual income of about $32,805 or $2,733 a month.

“If you’re a family of four living on $2,700 each month, you’re already stretching your budget pretty thin,” said Hirsch. “To add an increase for basic needs like heat for your home, that’s an implication that low income families are going to struggle with.”

Last winter, the program assisted about 6,000 families on a $1,023,000 budget. This year, the program has about $60,000 more in available funding, so Hirsch said they are hoping to be able to help even more families.

If a family receives initial funding but it ends up not being enough, they can also receive crisis funding up to $800.

The program started Nov. 1 for the elderly and disabled. Dec.1 the program will open up to all other eligible famlilies and will end March 30 for the initial funding. The crisis funding will go until the end of May or whenever funds run out.

Families can get an application online and mail it to CMCA. Details here.