Columbia Gas of Kentucky has received approval from the Kentucky Public Service Commission for its most recent gas cost adjustment. Effective Tuesday, Columbia Gas of Kentucky's gas supply cost fell to $6.5127 per 1,000 cubic feet, a 2.4 percent decrease.
The new gas supply cost will remain in effect until the next scheduled adjustment in March, the company said in a release.
Columbia Gas of Kentucky typically adjusts its prices quarterly to reflect current market conditions. Natural gas distribution companies do not earn a profit on their gas commodity costs, and Columbia Gas of Kentucky passes the cost along to customers without markup.
A customer's monthly bill is comprised of two primary components: the gas supply cost and the delivery cost. The delivery charges cover the cost of delivering the gas to the customer's home or business through the company's pipeline infrastructure, and the line inspection, repair, 24-hour emergency service and other costs. The gas supply cost includes the commodity cost, interstate pipeline charges and storage costs. The gas supply cost charges typically account for about half of a customer's monthly bill.