Lexington council OKs Columbia Gas rate hike settlement

Under a settlement approved by the Lexington council, residential customers will see a $6 increase on average in their monthly gas bills after the first of the year.

The Urban County Council voted unanimously Thursday to approve the proposed settlement between Columbia Gas, Attorney General Andy Beshear and groups that represent ratepayers. The settlement will be presented to the state Public Service Commission, which regulates utilities and sets utility rates, at a hearing on Nov. 1. The commission will decide whether to accept, reject or alter the settlement.

Columbia Gas had originally proposed increasing its revenues by $25.4 million a year. The settlement allows for an annual increase of $13.4 million. That translates to bump of roughly $6.09 a month for a customer who uses on average 5,500 cubic feet of gas each month. The average commercial customer would see an increase of $24.34 a month.

The increase in revenues will go toward replacing aging infrastructure. As part of the settlement, Columbia Gas has also agreed not to seek another rate increase until May 2019. The last rate increase was in December 2013.

This story was originally published October 27, 2016 at 7:45 PM with the headline "Lexington council OKs Columbia Gas rate hike settlement."