ST. LOUIS, May 2 /PRNewswire/ -- Laclede Gas Company, Missouri's largest
distributor of natural gas energy, said today it will seek rehearing, and if
unsuccessful, appeal a Missouri Public Service Commission ruling that reverses
the terms of the Price Stabilization Program approved by the Commission in
At issue is a 3-2 Commission decision that would deny Laclede $4.9 million
in proceeds under the terms of the Price Stabilization Program previously
Laclede believes the terms of the Commission's approved program clearly
permit Laclede to retain its share of the benefits from its efforts under that
Incentive Program during the very cold winter of 2000/2001, of which nearly
$20 million in call option proceeds were used to offset the cost of gas that
would have otherwise been paid by its customers.
As part of its earlier agreement with the Commission, Laclede also
voluntarily contributed another $4 million of its share of these proceeds
toward funding the program in its third year -- a contribution that allowed
the Company to save its customers tens of millions of dollars more in gas
costs during the winter of 2001/2002.
Laclede believes that the Commission's decision to change the terms of an
approved program after the fact is neither lawful or fair, nor in the
interests of utility customers who benefit from such incentive programs.
SOURCE Laclede Gas Company