Natural Gas Prices

Natural Gas Prices

December 2017

Effective November 29, Columbia Gas of Kentucky's gas supply cost is $5.3629 per Mcf. This price will remain in effect until Columbia's next regular quarterly adjustment in March 2018.

The Actual Cost Adjustment

Each quarterly gas cost adjustment is a projection of what Columbia expects to pay for the natural gas it purchases for its customers in the upcoming quarter. That price is derived by a formula that takes into consideration current and projected market prices, storage costs and interstate pipeline charges.

Although these quarterly projected prices are based on the most current data available, they are estimates. Since Columbia Gas of Kentucky does not earn a profit on the price of gas, these estimates must be reconciled to what was actually paid for the gas to ensure that customers pay exactly what was paid by Columbia for their natural gas supplies. This reconciliation is known as an actual cost adjustment. Sometimes this actual cost adjustment is a charge and sometimes it is a credit, depending on whether Columbia overestimated the cost of natural gas purchases or underestimated the cost. This charge or credit is embedded in the gas supply cost paid by customers.

The current price of natural gas – $5.3629 per Mcf – includes a charge. This is because the natural gas Columbia purchased for its customers in the previous 12 months was lower than the expected cost and Columbia is applying a credit to the current price.

Current Price Breakdown for Columbia-Supplied Customers and CHOICE ® Participants

If you are now supplied by Columbia Gas of Kentucky and were supplied by Columbia during the previous 12 months, the gas supply cost is $5.3629 per Mcf.

If you are now supplied by Columbia Gas of Kentucky and were a participant in the Customer CHOICE ® Program during the previous 12 months, the actual cost adjustment does not apply to you and your current gas supply cost from Columbia Gas of Kentucky will be $4.8943 per Mcf. This price is applicable for those billing month(s) this year during which you were enrolled with a CHOICE ® supplier in the same billing month(s) the previous year. Your gas supply cost will then change to $5.3629 per Mcf (or the price in effect at that time) for those billing months this year during which your gas was supplied by Columbia Gas of Kentucky in the same billing months the previous year.

If you are now a Customer CHOICE ® Program participant and were supplied by Columbia Gas of Kentucky during the previous 12 months, your bill will show an adjustment (currently a charge) during the current billing month(s) that is the same billing month(s) as that one year ago when you were supplied by Columbia Gas of Kentucky.