Summit natural gas customers will see rate changes

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JEFFERSON CITY, Mo. - To reflect estimated changes in the wholesale cost of natural gas as
well as a change in the company’s Actual Cost Adjustment (ACA) factor, Summit Natural Gas of Missouri customers will see natural gas rates change under a filing that takes effect on Nov. 9, 2016.

The ACA factor is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12 month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.

Gallatin Division: Residential customers currently pay approximately $0.38 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.35 per Ccf — a decrease of approximately $0.03 per Ccf.

Warsaw and Lake of the Ozarks Divisions: Residential customers currently pay approximately $0.51 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will drop to approximately $0.47 per Ccf — a decrease of approximately $0.04 per Ccf.

Rogersville and Branson Divisions: Residential customers currently pay approximately $0.47 per Ccf (per hundred cubic feet) of natural gas. Under this filing, the rate will increase to approximately $0.50 per Ccf—an increase of approximately $0.03 per Ccf.

Approximately 55 percent to 60 percent of a customer’s current natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply,
demand and the weather.

The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.

Summit Natural Gas serves approximately 18,200 natural gas customers in Missouri.