Laclede Targets $34 Million Yearly Savings From MGE Deal

Laclede Group anticipates a reduction of between $25 million and $34 million a year in nonfuel operating and maintenance expenses as a result of of its acquisition of Missouri Gas Energy by fiscal 2016.

Last month, the Missouri Public Service Commission approved Laclede Group subsidiary Laclede Gas’ $975 million planned acquisition of MGE from Southern Union Co. The approval allows for the deal to close on or after Sept. 1

Laclede Group reported net income of $6.6 million for the fiscal third quarter ended June 30, down 21.9 percent from the prior-year quarter on operating results from its gas marketing division in the same earnings call. The gas marketing segment reported net income of $1.4 million for the recent quarter, down from $3.2 million in the third quarter of fiscal 2012, due to reduced sales margins as a result of low volatility of natural gas prices.

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