FINNEGAN, CONRAD & PETERSON L.C.

Missouri Natural Gas Task Force Releases Report

The causes of the price spikes were discussed along with several approaches to incentive plans that might be used in the future by the natural gas distribution utilities. The transportation viewpoint was important to many of the participants. As experienced gas purchasers, transportation representatives brought insight to the markets and were there to buffer or correct some public misperceptions regarding the overall rate-setting process.

It is a fair statement that few members of the general public have any real understanding of the causes of the price spike. Many comments, however, were expressed that the existing PGA process needs to be revised to "smooth" out price changes and to provide additional options to residential customers that they could use to stabilize their own gas rates. Such means as "weather-proof bills" or other levelized billing options were discussed and encouraged. These programs have problems of their own, but some could permit some residentials to have better control over their natural gas costs. Perhaps the most important function of the Task Force was as public education. Many stakeholder groups had representation and went away from the meetings better informed as to the causes and possible remedies of the problem. The full Task Force report and several of the supporting documents are available on the web at http://www.psc.state.mo.us/publications/TF_Issued_Final_Report1.pdf.