Updated August 26, 2022:
If you’ve filled up at the gas station recently or watched the news, you are aware that fuel prices have increased dramatically over the last several months and remain volatile. This volatility in fuel prices not only impacts what you pay at the gas pump, it also impacts the costs of natural gas and electricity for your home and business.
Liberty, like many other utilities, buys the natural gas we deliver to our gas customers and that we use to fuel some of our electric power generation plants for our electric customers on the energy market. As a regulated utility, our fuel costs are passed through to customers with no mark up, and Liberty does not profit on this part of your utility bill. The higher prices that started last year have continued to spike, and we expect this trend to continue into the winter.
We know this may create hardship for some of our customers. Below is some information about why the increase is happening, how it may affect your bill, and what we are doing and what you can do to help offset the increase.
Several factors are contributing to the natural gas price increase occurring in the U.S. and across the globe:
The cost of gas is based on market price. The price we pay for the natural gas that we deliver to our gas customers or use to generate power for our electric customers is passed through to customers without a markup. We don’t profit on this part of your bill. For some of our states and utilities, this charge is updated monthly, and for others, this charge is updated every six months or annually. The update is a historic look back at what we actually paid for fuel versus what customers were charged for fuel during that time period. Customers pay no more or less than what we pay. Currently, we expect customers will see an increase due to the volatility in the fuel market this year.
|State||Commodity||Line-item name on the bill||Fuel costs updated:|
Energy Cost Recovery
|Every 12 months|
|Kansas||Electric||Energy Cost Adjustment||Every 6 months|
|Missouri||Electric||Fuel Charge||Every 6 months|
|Missouri||Natural Gas||PGA (Cost of Gas)||Every 12 months|
|Oklahoma||Electric||Fuel Charge||Every 6 months|
While the U.S. and global natural gas market is not something that Liberty can control, there are steps we can take to help manage the impact of natural gas prices on our customers.