Missouri Gas Energy Surcharge Collects More Than Expected

Missouri Gas Energy (MGE) collected more money than expected during a two-year pilot program to help low-income people in the Joplin area pay their heating bills.

Because the program collected more than expected and requests for aid in the Joplin area were not as high as expected, the Missouri public service commission recently authorized MGE to redistribute $250,000 to the Extra Help program for low-income MGE customers.

An estimated $830,000 was collected with an 8-cent monthly surcharge that was paid by about 460,000 residential customers from August 2001 to August 2003. As part of the pilot program, about $270,000 of the money has been used to subsidize heating costs for customers in the Joplin area whose income is at or below federal poverty guidelines.

The Mid-America Assistance Coalition (MAAC) in Kansas City will administer the Extra Help program statewide through community-action agencies. The program will benefit MGE customers who are currently in the experimental low-income rate program in the Joplin area, plus those from other areas who fall within 200 percent of the federal poverty guidelines.

The $250,000 also will be used for additional assistance for people who have exhausted their aid through LIHEAP, according to David Johnson, chief financial officer for the MAAC.

A portion of the remaining money, estimated at $310,000, may be needed to help customers in the pilot program in the Joplin, Webb City, Neosho, Carl Junction, Carthage, Carterville and Seneca areas with their remaining winter bills until April, according to Pam Levetzow, MGE customer and government relations spokeswoman.

Source: Joplin Globe

Page Last Updated: December 7, 2005