Columbia Gas of Kentucky, a subsidiary of NiSource Inc. (NYSE: NI), has filed a request with the Kentucky Public Service Commission (PSC) to adjust its delivery rates to recover capital investments and continue to improve the overall safety and reliability of its natural gas distribution system serving 138,000 customers throughout 30 Kentucky counties.
The company’s request, referred to as a rate case, represents an overall increase in revenues of about 15.8 percent. The proposed changes translate to an increase of about $7.28 on an average residential customer’s monthly bill and an increase of about $28.73 on an average commercial customer’s monthly bill.
The company last filed a request to increase delivery rates in 2021. The proposed new rates aren’t expected to go into effect for most customers until early next year, following a thorough review by the PSC.
“Safety is at the center of everything we do at Columbia Gas, and accordingly, safety is the focal point of this request,” said Columbia Gas of Kentucky President and Chief Operating Officer Kimra H. Cole. “In order to continue to provide safe and reliable natural gas service across our broad service territory, we must continue to invest in our distribution system, critical training for our employees and technology we need to enhance customer service and protect our customers and system from cybersecurity risks.”
There are two basic components to a customer’s monthly bill: the Gas Supply Cost, or commodity charges, and Delivery Charges. The Gas Supply Cost, which comprises about 35 percent of the customer bill, is passed along to customers without markup. The rate case applies ONLY to the Delivery Charge portion of a customer’s monthly bill. The delivery charges cover costs associated with making natural gas service available to customers, including the investments in the employees, equipment and materials needed to provide safe and reliable natural gas service around the clock every day.
Deliver charges include:
- A fixed customer charge, which would increase from $19.75 to $27 per billing period for residential customers; and
- A volumetric charge that varies depending on the amount of natural gas a customer uses. For residential customers, this charge would increase from $5.2528 per Mcf used to $5.7874.
Customers experiencing financial difficulty – regardless of their income – are encouraged to contact Columbia Gas or visit ColumbiaGasKy.com/assistance to learn about payment resources, including extended payment plans, budget payment plans and state and federal payment assistance. Rate information is available at ColumbiaGasKy.com/rates, and an explanation of the charges is available at ColumbiaGasKy.com/bill.
Customers also have a voice in the rate case process in multiple ways – through the Commission's website at http://psc.ky.gov or by mail to Kentucky Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602, or at future public field hearings.
For more information about this rate adjustment request, customers may visit ColumbiaGasKY.com/rates or visit psc.ky.gov, referencing Case No. 2024-00092.
