Columbia Gas of Kentucky has received approval from the Kentucky Public Service Commission for its most recent Gas Cost Adjustment.
Columbia Gas of Kentucky’s gas supply cost will increase slightly from its current 20-year low price of $2.7190 per Mcf (1,000 cubic feet) to $2.8329 per Mcf, effective Nov. 30, according to a news release from the company.
The new gas supply cost will remain in effect until the next scheduled Gas Cost Adjustment in March 2016.
“This is the lowest commodity price we’ve seen in winter for many years,” said Columbia Gas of Kentucky President Herbert A. Miller, Jr.
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, the release states.
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.