Gas Rate Changes, Tariff Changes Adopted

November 18, 2024

During an open meeting on November 18, Midwest Energy's Board of Directors approved a natural gas rate case, along with changes to language in the electric and natural gas tariffs. All changes will go into effect January 1, 2025.

The rate case is nearly revenue-neutral for the company. An average residential customer will see their bill increase by less than 1 percent, or roughly 58 cents per month; an average commercial customer will see their bill increase by .55 percent, or roughly 76 cents per month. Most other customers will see slight decreases.

While revenue from the Residential class will increase about $105,000 per year, revenue from other classes will decrease for a system-wide revenue reduction of about $12,000 per year.

The Gas Cost of Service Rider will be renamed the Gas Cost of Delivery Rider, and will be reset for all classes.

For residential customers, this will result in a decrease from $3.48 per month down to $1.74 per month. The $900,000 annual cap on the Gas Cost of Delivery Rider will be eliminated, with future increases instead capped at 4.5 percent annually. These changes are consistent with our goals of keeping any increases under the rate of inflation.

Lastly, language will be added to the Energy Cost Adjustment (ECA) and Purchased Gas Adjustment (PGA) for collecting revenue for reserves to hedge against wholesale energy prices and future capacity needs.

Charts of bill impacts, and a summary of tariff changes is at: Natural Gas Rate Changes | Midwest Energy