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STATE EX REL. LACLEDE GAS CO. v. PUBLIC SERVICE COM'N

No. WD 63563.

156 S.W.3d 513 (2005)

STATE of Missouri ex rel. LACLEDE GAS COMPANY, Respondent, v. PUBLIC SERVICE COMMISSION of the State of Missouri, Appellant.

Missouri Court of Appeals, Western District.

March 1, 2005.

Attorney(s) appearing for the Case

Thomas R. Schwarz, Jr., Jefferson City, MO, for appellant.

Michael Charles Pendergast and Lawrence Carl Friedman, St. Louis, MO, for respondent.

Before HOWARD, P.J., ULRICH and BRECKENRIDGE, JJ.

VICTOR C. HOWARD, Presiding Judge.

The Public Service Commission approved a tariff implementing a three-year incentive hedging program, under which Laclede Gas Company was permitted to purchase and sell natural gas call options on future natural gas deliveries to manage the risk of fluctuations in natural gas market prices and create cost savings. The program provided certain incentives to Laclede to achieve the price protection and cost reduction benefits to its...

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