Columbia Gas of Kentucky has received approval from the Kentucky Public Service Commission to cut the cost of its natural gas. Effective Monday, Columbia Gas of Kentucky's gas supply cost will decrease 24 percent to $10.1224 per Mcf 1,000 cubic feet.
Columbia Gas of Kentucky adjusts its prices quarterly to reflect current market conditions and this adjustment reflects the lower cost of natural gas that Columbia purchases for its customers, the Lexington-based company said in a press release. With this adjustment, a Columbia residential customer using an average of 6 Mcf of natural gas per month would see their monthly bill decrease from $100.14 to $81.26.
A customer's monthly bill is comprised of two primary components: the gas supply cost and delivery costs. The delivery charges cover the cost of delivering the gas to the customer's home or business through the company's pipeline infrastructure. The gas supply cost includes the commodity cost, interstate pipeline charges and storage costs. The gas supply cost charges account for approximately three-fourths of a customer's monthly bill.