Columbia Gas agrees to reduced rate increase request
Also won't seek another increase for three years
FRANKFORT, Ky. (WTVQ) – The state has reached a proposed settlement agreement with Columbia Gas of Kentucky that reduces the utility’s original request and styates it won’t seek another increase for three years.
“Many Kentuckians rely on natural gas to heat their homes and businesses, and our Office of Rate Intervention exists to represent their interests in matters related to utility rates,” said Attorney General Daniel Cameron whose Office of Rate Intervention helped work out the agreement.
In May, Columbia filed an application with the Kentucky Public Service Commission to increase natural gas rates for more than 135,000 Columbia customers in 30 counties including Bath, Bourbon, Boyd, Bracken, Carter, Clark, Clay, Estill, Fayette, Floyd, Franklin, Greenup, Harrison, Jessamine, Johnson, Knott, Lawrence, Lee, Letcher, Lewis, Madison, Martin, Mason, Montgomery, Nicholas, Owsley, Pike, Robertson, Scott, and Woodford Counties.
Although, the average residential customer will see a rate increase of 12.4 percent if the PSC approves the settlement, the approved increases are 30 percent less than what Columbia had initially requested and the office will have saved Kentuckians $8.095 million in proposed natural gas rate increases. In the agreement, Columbia also agrees not to seek additional base rate increases for three years.
The settlement was filed Wednesday with the PSC.