$14 more for gas a month in Missouri? What to know about Spire's planned rate hike

Yahoo

2 days ago

Your gas bill might soon rise $14 per month in Missouri. But there's something you can do about it.
Spire is asking the Missouri Public Service Commission to approve an increase to gas rates. This month, you can participate in public hearings to share your thoughts about the plan.
The natural gas company was most recently approved for a rate increase in 2022, after two in 2021.
Missouri residential natural gas prices have been consistently higher than both Kansas and the national average for at least a decade, according to the U.S. Energy Information Administration. Spire doesn't charge a mark up on natural gas usage, which makes up almost 50% of an energy bill.
More than 40% of your Spire payment goes to delivery charges, which is how the energy company can make a profit and what Spire is hoping to increase.
The rate increase was filed in November 2024, months before Missouri Governor Mike Kehoe signed a major energy bill. In the future, utility companies will be able to charge customers for new power plants while they are being constructed, as opposed to after they're finished. Critics say this could lead to higher utility costs, as St. Louis Public Radio reported.
Spire reported earnings of $195.2 million from their gas utilities in the first three months of 2025, up from $188 million during the same period a year earlier, according to the company's quarterly report.
Under Spire's proposed plan, the average residential customer would pay $14 more per month, a 15% increase of the total bill. This would raise the delivery charge portion of the gas bill, where gas companies make their profits.
The Public Service Commission could approve some, all or none of the proposed increase. If approved, Missourians would have higher gas bills by Oct. 24, 2025.
Spire says the extra money would go toward offsetting the costs of higher inflation and interest rates, streamlining operations and to 'manage the impacts of weather and the effects of conservation on customer usage.' Spire says the rate increase would increase revenues by $236 million per year.
According to Spire, this rate increase just offsets the decrease in natural gas prices which took effect in November 2024.
The Spire website states, 'Overall customer bills will continue to be slightly lower or unchanged compared to what customers paid in 2024 when new rates take effect Fall 2025.'
The higher costs are necessary to improve Spire's infrastructure, said David Yonce, managing director of regulatory affairs.
'Affordability is always top of mind for Spire, and we think about our customers, and the impacts that they're experiencing in their lives more generally, any time that we're incurring costs and we're spending money,' Yonce said.
He said that the company needs to profit so it can get loans to build and make repairs.
'It's important for Spire … to be healthy, and to be healthy means that you have to earn a reasonable return so that you can attract capital to invest in your system,' Yonce said.
Higher energy costs would tighten budgets for Missourians already struggling with rising housing and food costs, said Garrett Griffin, spokesperson for Kansas City advocacy organization Communities Creating Opportunities. As a large, publicly traded company, Griffin said that 'they can absorb some price increases in a way that ordinary people cannot.'
Griffin pointed out that Missourians don't have a choice whether to buy gas from Spire, as the company has a monopoly on both the Kansas City and St. Louis metros, along with other counties throughout the state.
'We are all at Spire's mercy. Because, whether you're rich or poor or somewhere in the middle, we all have to pay heating bills in the winter,' he said.
There will be a public hearing in Kansas City on Wednesday, June 4, at 6 p.m. at the Gregg/Klice Community Center in the 18th and Vine District.
In addition, there will be two virtual public hearings on Tuesday, June 3, at noon and 6 p.m. Residents can join using Cisco Webex.
You can also send your comments to the Public Service Commission directly. Their email address is [e-mail] and their mailing address is:
Missouri Public Service Commission
PO Box 360
Jefferson City, Missouri 65102
Missourians can get help from Spire, the government and nonprofits to keep their gas running. Residents can apply for payment plans through Spire or energy assistance through the Missouri state government, among other programs.
Have more questions about utilities in Missouri? Ask the Service Journalism team at [e-mail].