Some Missourians to See Lower Electric Bills

3 years 2 months 1 week ago September 23, 2013 Sep 23, 2013 Monday, September 23 2013 Monday, September 23, 2013 10:23:00 AM CDT in News
By: India Everett, KOMU 8 Reporter

JEFFERSON CITY - Ameren Missouri electric customers will save about $1.97 a month on bills starting in October.

The Missouri Public Service Commission adopted a lower tariff that will take effect Tuesday, September 24.

The new tariff will mean a reduction from $6.07 to $4.10 a month in the Fuel Adjustment Clause (FAC) for the average residential electric customer. Kevin Kelly from the Missouri Public Service Commission said the average customer is someone who uses 1,100 kWh of electricity a month.

The reduction will only apply to Ameren electric customers, not customers who use Ameren natural gas. Residents inside the city of Columbia receive their electric utilities from the city, but those outside city limits who use Ameren electric will see the reduction in their next bill.

Customers will notice the difference in the FAC portion of their bill. Kelly said the FAC tariff allows the company to pass increases or decreases in its net fuel and purchase power costs to customers outside of a general rate case.

He said it is important to keep in mind that fuel cost is not the cost of gas to operate company vehicles, but it is the cost of fuel to keep the power plant and buildings in operation.

The rate is determined by the costs experienced between February and May of this year. Ameren will have the opportunity to apply to readjust the rate before the end of the year according to Natelle Diestrich, Director of Utility Operations with the Missouri Public Service Commission.

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