Some Kentucky natural gas customers would pay more under new deal if PSC approves
As Kentuckians use more natural gas to cope with falling temperatures, Columbia Gas of Kentucky bills are set to increase, pending approval from the state Public Service Commission.
The revised proposal sent to the PSC projects an $8.26 increase in delivery charges per billing period for residential customers, according to the utility. For commercial businesses, the delivery charges would rise $26.03 per billing period.
The delivery charges help pay for installing, testing and maintaining the pipelines used to transport natural gas, providing emergency service and other expenses.
The price boost would occur in 30 Central and Eastern Kentucky counties, including Fayette. More than 135,000 customers across the state would be affected.
Delivery charges are just one variable in a customer’s natural gas bill. The other is a commodity charge, which changes quarterly based off the market price of natural gas, is the largest portion of a customer’s bill.
The commodity charge won’t change in the proposal sent to the PSC.
The proposal is a settlement between Columbia and the attorney general’s rate intervention office. Originally Columbia wanted to raise its rates upwards of 50 percent, but the proposed settlement chopped that increase down to 12.4 percent, officials said.
The settlement also would bar Columbia from seeking an additional base rate increase for at least three years.
“Many Kentuckians rely on natural gas to heat their homes and businesses, and our Office of Rate Intervention exists to represent their interests in matters related to utility rates,” Cameron said in a press release. “As a watchdog for Kentucky ratepayers, we pursued a settlement with Columbia Gas and reached a settlement that saves Kentuckians more than $8 million in proposed natural gas rate increases.”
The PSC will meet next Wednesday to review the proposal. The meeting will start at 9 a.m. and be live streamed on the commission’s website.
This story was originally published October 28, 2021 at 12:09 PM.
