The Joplin Globe, Joplin, MO

Joplin Metro

Discussion

August 31, 2009

MGE service charge questioned

By Wally Kennedy

wkennedy@joplinglobe.com

Eight people testified Monday night during a Missouri Public Service Commission hearing in Joplin on a proposed rate increase that, if approved, would increase delivery rates for all customer classes of Missouri Gas Energy by a total of $32.4 million.

If the full increase is approved by the commission, the estimated monthly increase would be $5.21 for residential customers, $4.06 for small general service, $20.15 for large general service and $173.04 for large-volume service.

The proposed rate increase primarily involves non-gas costs related to MGE’s distribution system, uncollected expenses, new collective bargaining expenses and increased environmental costs. The actual cost of natural gas makes up about 70 percent of a customer’s bill, but the rates that wholesale suppliers charge MGE are not regulated by the PSC.

The PSC staff has recommended an increase of $12.9 million. That recommendation could change as the case moves forward. The PSC has until March to decide a course of action.

Some who spoke during the hearing at Missouri Southern State University questioned the monthly service charge in terms of what a customer actually gets for his money.

Ronald Twenter, of Webb City, a former inspector for a natural gas company, asked during the session, “What service do we get?”

Twenter said that when he was an inspector, problems with malfunctioning furnaces and leaks were detected before they posed a safety hazard for the customer.

“That was back when they actually did service,” he said. “They don’t do that now. And they want more money for a service charge?”

Twenter said the pay scale in the Joplin area is low, and that some local residents will find it “really tough to pay more in an economy that is poor. This is poor timing for a rate increase.”

James Gwaltney, who did not say where he lives, said service charges by other gas providers in Missouri are a lot less than those charged by MGE.

David Bryan, who moved to Joplin from St. Louis after living in Detroit, Mich., said, “Their fixed fees are entirely too high, period.” He said the company hired experts to help it make the best case possible for a rate increase. He said the company should have used its own resources to present the case. The cost of hiring those expert consultants, he said, is figured in the proposed rate increase and will be passed on to ratepayers. He said that cost should not be passed on to customers.

Nora Smith, who lives in Webb City, said she has made several improvements to her home to increase its energy efficiency. That work, she said, has not translated into a lower bill from MGE. “I don’t know what else I can do to get my bill down,” she said.

William Livingston, of Joplin, said: “You should be reducing our rates because the cost of natural gas has gone down. Instead, we have more charges.”

The PSC is holding five public hearings to receive customers’ comments on the proposed rate increase. Other hearings will be held this month in Warrensburg, St. Joseph, Kansas City and Lee’s Summit.

MGE has about 500,400 natural gas customers in Missouri.





Comments



Customers who want to make written comments or secure additional information may contact the Office of the Public Counsel, P.O. Box 2230, Jefferson City, MO 65102-2230, or call 573-751-4857.

Text Only
Joplin Metro
  • Ruby-Sapp-obit.jpg Longtime Democrat dies at 81

    Sapp, 81, died Thursday. Funeral services were Monday at the First Presbyterian Church of Joplin. A longtime Jasper County Democratic committeewoman and volunteer, Sapp for years was secretary to the county’s central committee.

    August 9, 2010 1 Photo

  • Motivational speaker offers free marriage course

    Presented by Mark Gungor, the course is being offered free to the community. The event is being held to aid in tornado relief. 

    January 12, 2012

  • District sends faculty, administrators on site visits

    With the design phase of several buildings in Joplin Schools ending in May, the district has sent 66 administration, faculty, parents and community members on site visits to 22 schools and two technology company headquarters across the country.

    January 11, 2012

  • 011012 Jop HS mural1_72.jpg Mural depicting Joplin High School dedicated

    A four-paneled mural depicting the recent history of Joplin High School was dedicated at the Memorial 9th- and 10th-grade Center Tuesday morning. The mural will be moved to the new high school when it is completed in 2014.

    January 10, 2012 4 Photos

  • Carl Junction chamber creating new committees

    The Carl Junction Chamber of Commerce is kicking off three new committees this week with meetings scheduled Tuesday and Wednesday.

    January 9, 2012

  • Body of missing Joplin man found

    The body of a missing Joplin man was discovered this afternoon inside his home in the Royal Heights neighborhood of Joplin.

    January 3, 2012

  • Wildcat Glades nature center receives $50,000 grant

    The Wildcat Glades Conservation & Audubon Center has received a $50,000 TogetherGreen Innovation Grant, which is being provided through an alliance between the National Audubon Society and Toyota.

    October 21, 2011

  • Joplin shooting victim’s name released

    The Joplin Police Department today released the name of a woman fatally shot in her home early Thursday and acknowledged that the shooting was reported as a suicide attempt.

    October 21, 2011

  • Barry Manilow to deliver donated instruments

    Singer-songwriter Barry Manilow will visit Joplin next week to donate more than $300,000 in musical instruments to replace those lost during the May 22 tornado.

    October 21, 2011

  • Extreme Makeover releases names of families

    "Extreme Makeover: Home Edition" has released more details about the build in the 2400 block of Connor Avenue, including the names of the seven families. They are:

    October 19, 2011