Rate hearing held on MGE 4.9% rate increase

The Missouri Public Service Commission held a Feb. 25 public hearing in Independence on a proposed 4.9% rate increase proposed by Missouri Gas Energy.

Over 80 local residents attended the hearing which a MGE representative answering questions and formal comments by rate payers to the state commission which regulates investor-owned utilities.

A Feb. 25 public hearing on the MGE natural gas rate increase at the North Independence public library


MGE is seeking a $23.3 million rate increase - 4.9% increase while the PSC staff recommendation is a .3% increase.

The rate request covers recovering infrastructure investments, higher taxes and insurance. The rate also includes customer incentives to increase energy efficiency.

If approved in full, the average residential customer would pay approximately $2.33 more per month or $28 annually.

The PSC staff recommendation would increase monthly rates less than a penny a month.

Read a summary of the MGE rate request. Read the PSC staff summary.

The Public Service Commission will hold evidentiary hearings during April in Jefferson City.

PSC staff outlined the rate making process and provided background on Straight Fixed Variable Rate Design.

The Independence public hearing is one of several being held around the MGE service area on the rate increase.

Independence Power & Light, a municipal-owned utility, is not covered by the Public Service Commission (PSC). It typically does not public hearing on proposed rate increase.

Electric and water rates are approved by the City Council, based on recommendations provided by the Public Utilities Advisory Board. The water company is a also a municipal-owned enterprise.

In 2008, the Independence City Council approved a general rate proposal that included a 9% rate increase on Jan. 1, 2009 and 5% increase each July 1 from 2009 to 2012.

IP&L electric rates are higher than the investor-owned Kansas City Power & Light and also the municipally-owned Board of Public Utilities (Kansas City, KS).