Spire Missouri files rate case to recover infrastructure and technology investments
ST. LOUIS, Nov. 26, 2024 /PRNewswire/ -- Late yesterday, Spire Missouri filed a rate case with the Missouri Public Service Commission (PSC) to recover infrastructure and technology upgrade investments made to better serve customers.
"We're committed to safely delivering reliable and efficient natural gas service to more than 1.2 million homes and businesses in Missouri and doing so in the most affordable way for our customers," said Steve Mills, Spire Missouri president. "We want our customers to know that even with this request, they will see bills that are slightly lower or unchanged compared to 2024."
A customer bill is largely made up of two components – Spire's delivery charge and the cost of the natural gas itself. While the delivery charge portion of a customer's bill – which covers the cost of the service Spire provides to safely deliver natural gas to a home or business – is expected to increase under Spire's request, the cost of natural gas seen on customer bills has decreased significantly compared to 2024. Including this decrease to natural gas costs, when new delivery rates take effect in Fall 2025, overall customer bills are expected to be lower or unchanged compared to the last year, assuming current natural gas market conditions.
What is Spire requesting?
During rate cases, the PSC examines the value of services customers have received from their utilities and establishes rates based on already incurred costs. A typical timeframe of rate case approval with the PSC is eleven months from the time of filing.
Should Spire's request be approved by the PSC, the average residential monthly bill for customers across Missouri are expected to increase next fall by approximately $17, or roughly 16%, compared to current rates, assuming current natural gas market conditions.
Since its last rate case was completed in 2022, Spire has continued to make investments in its delivery system and technology to benefit customers. For example:
- Spire has invested nearly $1 billion to maintain and modernize service infrastructure, in turn reducing emissions and improving the safety of its distribution system.
- New infrastructure means lower maintenance costs and improved reliability and service for years to come. It will also ensure that Missouri has the advanced energy infrastructure to fuel economic growth and job creation.
- During FY24, Spire was part of securing 37 publicly announced economic development wins in Missouri, representing an investment of nearly $3.7 billion in the state economy and resulting in the creation of more than 4,000 jobs. Access to natural gas played a key role in securing many of these projects.
- Spire continues the rollout of advanced metering technology for its customers across Missouri. The upgrade offers both enhanced safety features and, once fully implemented, improved insights into monthly energy usage.
The filing addresses increased costs experienced in recent years as Spire was not immune to impacts from inflation and higher interest rates that impacted consumers and businesses across the country.
With this filing, Spire hopes to create one Spire Missouri service territory, providing customers consistent rates across the state and a streamlining of operations, ultimately translating to efficiencies for customers and for Spire. Spire is also requesting an improved mechanism to mitigate the impacts of changes in weather and the effects of conservation on customer usage, as allowed under Missouri law.
For more information, visit spireenergy.com/rate-case.
About Spire
At Spire Inc. (NYSE:SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us one of the largest publicly traded natural gas companies in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing and Spire Midstream. We are committed to transforming our business through growing organically, investing in infrastructure, and advancing through innovation. Learn more at SpireEnergy.com.
Investor Contact:
Megan L. McPhail
314-309-6563
[email protected]
Media Contact:
Jason Merrill
314-342-3300
[email protected]
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SOURCE Spire Inc.