Natural gas prices falling for Columbia Gas customers

Columbia Gas of Kentucky customers will pay 7 percent less for natural gas in the next three months because the state Public Service Commission has approved the utility's quarterly gas-cost-adjustment proposal, which will be effective through September.

Customers who are supplied by Columbia Gas and have been for the past 12 months will pay $5.4551 per thousand cubic feet, down from $5.8813.

People who are Columbia Gas customers but previously were in the Customer Choice program, which uses other suppliers, will pay $6.7939, down from $7.2179.

Columbia Gas adjusts its prices quarterly to reflect market conditions. Utilities are not permitted to make a profit on the cost of natural gas, which accounts for about 60 percent of bills. Gas costs are estimated, and actual costs from the same quarter a year ago are reflected in those estimates. The company overestimated its costs and charged more last year, leading to lower prices this year for people who also were customers a year ago.