Your Missouri heating bill could be reduced by double digits as winter approaches
As cold weather approaches in the Kansas City metro, Missouri residents who heat their homes with natural gas can expect to see a drop in their bills of around $18 per month starting Friday, Nov. 15.
The Missouri Public Service Commission, which regulates many of the privately owned utility companies in the state, announced Tuesday that natural gas giant Spire plans to lower its prices.
“Compared to existing rates, and assuming normal usage, the average monthly bill of the typical residential customer will decrease by $18.70 (17.41%) for Spire customers in Western Missouri,” Spire spokesperson Jason Merrill wrote in an email to the Star.
Spire supplies natural gas to most Kansas City area homes on the Missouri side of the metro, plus other western Missouri counties and some in the St. Louis area.
The company is currently under investigation by the Public Service Commission over a whistleblower’s allegations that officials instructed employees to hide and destroy documents related to a forthcoming rate increase request.
Why are heating bills decreasing in Missouri?
The gas price Spire charges customers will decrease by around 32% in the western district of Missouri on Nov. 15. The decline comes from the low wholesale price of natural gas as well as the company’s recovery of expenses incurred during Winter Storm Uri in 2021.
While the price of natural gas fluctuates constantly, the industry has largely recovered from price increases sustained during the COVID-19 pandemic.
The gas cost on your heating bill is passed along directly from your utility company. Utilities like Spire don’t profit off this portion of the bill, which is why regulators often let them adjust this charge without going through a lengthy approval process.
Spire filed to lower its gas cost Thursday, Oct. 31, and the Public Service Commission approved it Tuesday, Nov. 12.
According to state regulators, the cost of natural gas itself makes up around 50%-55% of customers’ monthly bills. The rest of the bill comes from two other sources: taxes and the “delivery charge,” which covers the company’s other expenses like infrastructure maintenance, home gas meters, employee salaries, corporate profits and company vehicles and equipment.
Do you have more questions about utility bills in Kansas or Missouri? Ask the Service Journalism team at kcq@kcstar.com.
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