Columbia Gas seeks rate increase of almost $12 a month, first since 2016

LEXINGTON, Ky. (WTVQ) – Columbia Gas of Kentucky filed a rate increase request Friday with the Kentucky Public Service Commission.

It was the utility’s first in 30 years and the company said it is seeking to recover investments and other costs associated with its “ongoing proactive initiatives to improve the overall safety and reliability of its natural gas distribution system for its customers throughout 30 Kentucky counties.”

The proposed new rates aren’t expected to go into effect for most customers until early next year, following a thorough review by the PSC.

“Safety is at the center of everything we do at Columbia Gas,” said Columbia Gas of Kentucky President and Chief Operating Officer Kimra H. Cole. “And accordingly, safety is the focal point of this request. In order to continue to provide safe and reliable natural gas service across our broad service territory, we must continue to invest in our system by proactively replacing aging infrastructure and investing in the training of our employees who stand ready to respond to emergencies 24 hours a day, 365 days a year.”

There are two basic components to a customer’s monthly bill: the Gas Supply Cost, or commodity charges, and Delivery Charges. This rate adjustment request applies ONLY to the Delivery Charge portion of a customer’s monthly bill.

These charges – a customer charge and a volumetric delivery charge that varies depending on the amount of natural gas a customer uses – are the costs associated with making natural gas service available to customers, including the investments in the people, equipment and materials needed to provide natural gas service around the clock every day of the year.

The request also includes information technology improvements to enhance customer service and safeguard customers and the operating system from cybersecurity risks.

The proposed changes translate to an increase of about $11.85 on an average residential customer’s monthly bill and an increase of about $37.59 on an average commercial customer’s monthly bill.

“Providing affordable natural gas service is essential, and this proposal seeks to strike the right balance of cost and service in order to continue delivering on our commitments to customers,” added Cole. “Any change in bills matters and help is available to those who need it most, including those impacted by the pandemic.”

Customers experiencing difficulty with their bill – regardless of their income – are encouraged to contact Columbia Gas of Kentucky to determine what help might be available to them. It is the company’s goal to work with customers to identify solutions, and more information is available at ColumbiaGasKY.com/assistance.

Customers also have a voice in the process in multiple ways – through written comments submitted directly to the Kentucky Public Service Commission, at a future public field hearing and through various consumer advocacy organizations that participate in the process.

Columbia’s request represents an overall increase in revenues of $26.69 million.

For more information about this rate adjustment request, customers may visit ColumbiaGasKY.com/rates or visit psc.ky.gov, Case No. 2021-00183.