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St. Louis Post-Dispatch

Lee Enterprises

Tuesday, September 22, 2009 10:06 PM CDT
Ameren expects lower natural gas prices this winter

Staff report

PEORIA — Ameren Illinois expects its natural gas customers to pay 26 percent less for the fuel this winter.

The utility says the cost of natural gas should be lower because the global recession has reduced demand.

Ameren Vice President Scott Glaeser says prices should also hold relatively steady because Ameren has hedged most of its natural gas supplies for the winter to avoid having to raise or lower prices with every market swings.

“The good news for our customers is that we expect natural gas prices will be well below the prices paid last winter,” said Ameren Vice President of Gas Supply and System Control Scott A. Glaeser. “Furthermore, we have the majority our natural gas supplies hedged or ‘price protected’ for the upcoming winter to insulate our customers from market volatility.”

Glaeser also stressed that the Ameren Illinois Utilities have secured adequate natural gas supplies to meet customer needs during the upcoming 2009-10 heating season.

Last October, Ameren customers paid an average price of $1.32 per therm for natural gas, while the October 2009 price average will be 56 cents, or 58 percent lower than a year ago.

During the winter of 2008-09, AIU customers paid an average of 84 cents per therm. AIU is anticipating this winter’s price to average 62 cents per therm or 26 percent less than tlast year, assuming normal winter temperatures.

The three Ameren Illinois Utilities are energy delivery companies. As such, they must purchase natural gas from producers for delivery to customers. The price of natural gas fluctuates from one month to the next based on supply and demand.

Ameren has about 421,000 natural gas customers in Illinois.

The Associated Press

contributed to this report.

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Hammbone wrote on Sep 22, 2009 6:31 AM:

" I will beleave it when I see it! "

Billie Brant wrote on Sep 22, 2009 9:47 AM:

" Is this going to be a case of giving with one hand ( lower gas prices) and taking with the other in the form of higher electricity rates? "

just wondering wrote on Sep 22, 2009 9:54 AM:

" Just because Ameren pays less for natural gas doesn't mean we will pay less for natural gas. Mr. Flider will probably get another law passed that says they get to charge us more for less. "

Jim1969 wrote on Sep 22, 2009 10:16 AM:

" We will probably end up with a 30% increase in electric rates as a result. "

Mama says wrote on Sep 23, 2009 2:13 AM:

" AMER sent us letter stating expect gas up so suddenly NOT? I do not believe it is going to lower. It will lower and electric always ADD more on us.
We are looking into the one and two room heaters that uses energy of 9 watt bulb and keeps a room warm. I said this would be good way SAVE in long run and they look like fireplaces and under $300 each, worth a try and if order 2
of their two room sizes, heat our downstairs. Friend bought two and she told me good investment and good heat and wasn't cold all last winter at all.
CHEAPER ALTERNATIVES will be found because WE THE PEOPLE tired of being ROBBED by utilities and we keep not using and lowering thermostats or not afford CIPS or electric companies.

We might all have live together in winter and hot weather and pay just once
for all and we could handle two families in this house. That would SAVE.
AND cook together and probably better eating. "

smileyone wrote on Sep 23, 2009 2:45 AM:

" That is interesting because my bill I just received today stated that they are trying to pass a price increase for 2010 and my current bill of $208 would be $226 as of May 2010. I guess they are trying to give us all a little bit of a price break before really sticking it to us...again. "

Becky wrote on Sep 23, 2009 7:19 AM:

" Wow Ameren, you really aren't trusted too much these days, huh? Gee, wonder why? "

Rockin Rotty wrote on Sep 23, 2009 8:46 AM:

" Hey kids! It's time to go lay some greenbacks down on a Paul Harvey heater.

Ameren, go crawl back under your rock! "

BW wrote on Sep 23, 2009 1:42 PM:

" Then, as we conserve energy, they'll have to have increases to cover all their borrowing. Goes to show, ya just can't win against a monopoly. "

prairieguy wrote on Sep 23, 2009 7:10 PM:

" Is the April 1st edition of the paper here already? "

Jeremy wrote on Sep 24, 2009 4:24 PM:

" Prices will never go down. If they do, some fee will be applied to raise the total cost. "

Mama says wrote on Sep 29, 2009 2:57 AM:

" Wonder if a fee is how the bigshots go to romantic vacation spots, drive $40,000 vehicles, wear those expensive suits and shoes, and dine out all the time live in 13 bedroom homes? Why would two people need such a huge house? Oh the utilities are less for them, hehehehe.

Our new cips bill has gone up $40
more so what will the next bill be? "

Mama says wrote on Oct 2, 2009 3:58 PM:

" Good credit is a good thing. Loan on the 2 heaters for house will be $60 month and figure SAVE more than that on the heating this winter. I shopped til found 5.5% interest loan. The heaters arrived and look like fireplaces and sure do knock off a chill in a hurry.
We set the big furnace on 60* and the one heater made the house 73* so they do work wonders. We checked gas meter before the heater and seeing how fast or slow it will spin now. Last winters bill at this time was climbing. We figure if one works just run it but two with the low wattage may be very low in which Amerens will want charge more cause using less again? I could live in a log cabin and be happy if the outhouse was just behind the cabin.
Uncle used a lantern to SEE at night and keep the outhouse warm. Catalogs for toiletpaper. THE GOOD OLE DAYS.
They had corncobs you rubbed them in hands to make them soft. Not all that soft either. But they worked for the job. When out of paper I long for the catalog help. hehe. "