From the Offices of Ameren Illinois Utilities
Peoria (Feb. 23, 2009) – With one month remaining in the 2008/2009 heating season, Ameren Illinois Utilities natural gas customers will benefit from another significant drop in the cost of natural gas.
The continued decline in the cost of natural gas is a reflection of weak global demand for energy that has led to declines in the market prices of both crude oil and natural gas.
The cost of natural gas delivered to residential customers during March will be much lower than the price paid in February. Natural gas prices for March are as follows: AmerenCILCO – $0.64 per therm as compared to $0.77 in February, AmerenCIPS – $0.68 per therm as compared to $0.84 in February, and AmerenIP – $0.64 per therm as compared to $0.77 in February, reflecting decreases of 17 percent, 19 percent and 17 percent respectively. Since their peak last fall, per therm natural gas costs for the Ameren Illinois Utilities have dropped by 40 percent to 55 percent.
“The price of natural gas fluctuates from one month to the next based on supply and demand. Global economic conditions continue to weaken demand, especially in the industrial sector, resulting in lower gas prices,” said Ameren Vice President of Gas Supply and System Control Scott A. Glaeser.
“We also recognize that the extremely cold temperatures that occurred in December and January meant that our customers used more natural gas this year than a year ago, resulting in higher total bills,” Glaeser said. “We have and will continue to provide our customers with the information they need to better manage their energy usage.”
Residential customers are encouraged to enroll in the Budget Billing plan. This plan allows residential customers to pay the same amount each month. The plan allows customers to pay an average monthly bill amount based on the last 12 months of usage. The payment level is periodically reviewed and adjusted as necessary. On the 12th month, the account is reviewed to calculate the difference between the amount of energy used during the year and the amount paid under Budget Billing. If the amount paid exceeds the actual cost of providing the energy, the customer receives a credit. If the amount billed is less than the actual cost of providing the energy, the customer is billed for the difference. By enrolling now, customers can begin leveling out their monthly payments.
Customers may enroll in Budget Billing by visiting Ameren’s Web site (www.ameren.com) or by calling the Ameren Illinois Utilities (AmerenCIPS: 1-888-789-2477, AmerenCILCO: 1- 888-672-5252, and AmerenIP: 1-800-755-5000). Customers may enroll in the program or drop out at any time. There is no cost to enroll in Budget Billing.
Customers also are encouraged to adopt energy efficiency and conservation practices, which will allow them to pay less by using less energy. Customers may also consider setting thermostats a little lower. Each degree a thermostat is lowered can reduce heating costs by 2 to 3 percent. Ceiling and other circulating fans can be used to push warm air from ceilings. Humidifiers will help keep homes comfortable at somewhat lower temperatures.
A detailed list of energy efficiency and conservation suggestions is available on the new Act On Energy™ Web site (www.ActOnEnergy.com) by selecting the “Energy Savings Tips” menu item.
The Ameren Illinois Utilities purchase natural gas from gas producers located in various U.S. natural gas production areas. The wholesale price is not regulated, but rises and falls based upon market conditions caused by supply and demand. The Ameren Illinois Utilities pass the cost of natural gas on to customers, dollar for dollar without any profit or markup in price, through the Gas Charge (also referred to as the PGA, which means “purchased gas adjustment”). About two-thirds of a typical residential customer’s bill is the actual cost of natural gas.
The Gas Charge is recomputed each month and may go up or down depending on the wholesale price of natural gas. The Gas Charge is a matter of public record and is available on the Ameren Web site (www.ameren.com) under “Historical PGA Rates” for AmerenCIPS and AmerenCILCO and “Historical Gas Charges” for AmerenIP.
The Ameren Illinois Utilities strive to keep natural gas costs at stable and reasonable rates for their customers, while dampening the effects of market volatility and price spikes from the wholesale gas markets. The utilities utilize sophisticated financial hedging strategies and negotiate both long- and short-term natural gas supply contracts.
The Ameren Illinois Utilities utilize a number of interstate pipeline suppliers, accessing multiple production areas to bring natural gas to Illinois.
The Ameren Illinois Utilities have been providing safe, reliable energy delivery service for more than a century. The Ameren Illinois Utilities deliver energy to 1.2 million electric and more than 840,000 natural gas customers in about 1,000 communities, while helping customers spend less by using less and communities grow through economic development initiatives.
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