About our rate case
Columbia Gas of Kentucky filed a request with the Kentucky Public Service Commission (PSC) on May 16, 2024 seeking approval to adjust its base delivery rates to recover investments in overall system and maintenance in order to continue to provide safe and reliable natural gas service to 138,000 customers in 30 counties.
On December 30, 2024, after thorough review, the Kentucky Public Service Commission rendered a final order in the rate case.
Details about the rate case can be found on the PSC website, psc.ky.gov, by referencing Case No. 2024-00092.
Rate case frequently asked questions
Did customers have a say in the process?
The PSC conducted an evidentiary hearing on Oct. 21. The hearing was streamed live and may be viewed on the PSC website, psc.ky.gov. A notice about the public hearing was mailed to customers and/or posted in newspapers in all communities served by Columbia Gas the week of Oct. 7.
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What are the new rates?
The new rates, as approved by the Kentucky Service Commission, will include a change in the fixed Residential Customer Charge from $19.75 to $21.25 for residential customers and from $83.71 to $110 for commercial customers. The volumetric delivery charge will increase from $5.2528 per Mcf of natural gas consumed to $6.0958 per Mcf for residential customers. In all, the changes would increase the average residential customer’s bill by less than $7.
The proposed change in the volumetric delivery charge for commercial customers is shown in the table below based on consumption:
| Natural Gas Consumption | Current Volumetric Delivery Charge | Proposed Volumetric Delivery Charge |
| First 50 Mcf or less per billing period | $3.2513 | $3.1581 |
| Next 350 Mcf per billing period | $2.5096 | $2.4376 |
| Next 600 Mcf per billing period | $2.3855 | $2.3171 |
| Over 1,000 Mcf per billing period | $2.1700 | $2.1078 |
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Why did Columbia Gas ask for a rate increase?
In order to continue to provide safe and reliable natural gas service, we must invest in the maintenance and enhancement of our distribution system, just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities. The purpose of this rate adjustment is to recover current and planned investments to improve overall safety of our system, provide critical employee training and make technology improvements to enhance customer service and protect our customers and the operating system from cybersecurity risks.
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Is there any help available for families that are struggling financially?
Columbia Gas is always committed to providing low-income customers with the tools, resources, and programs to stay safe and warm in their homes. Columbia Gas has agreed to contribute an additional $50,000 per year in funding for our low-income energy assistance programs. There are multiple programs available to help customers mitigate the impact of a rate adjustment or financial changes due to economic conditions. Visit ColumbiaGasKy.com/Assistance for more information.
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When will the new rates take effect?
New rates will go into effect January 1, 2025.
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When was the last time Columbia Gas asked for a rate increase?
Columbia Gas’ last rate case was filed in May 2021 and was effective in January 2022.
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What is a rate case?
Unlike most businesses that can change the price of their product/service without outside approval, regulated energy providers – like Columbia Gas – must submit a detailed request to the Kentucky Public Service Commission to change their base delivery rates. The request includes evidence to support the increase and demonstrate how it benefits customers. That process – referred to as a rate case – takes several months of review and includes opportunities for consumers and advocacy groups to provide input. Documents filed as part of this request can be found at the Kentucky Public Service Commission’s website – psc.ky.gov – under Case No. 2024-00092.
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What is the Public Service Commission?
The Kentucky Public Service Commission is a three-member administrative body with quasi-legislative and quasi-judicial duties and powers regulating more than 1,100 utilities. Commissioners are appointed by the governor. Currently, the Commission regulates the intrastate rates and services of investor-owned electric, natural gas, telephone, water and sewage utilities, customer-owned electric and telephone cooperatives, water districts and associations, and certain aspects of gas pipelines. The commission has regulatory responsibility for rate increases, meter accuracy, consumer complaints and the construction and operation of utility facilities. Visit psc.ky.gov for more information.
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What rates will change?
There are two basic types of charges on a natural gas bill: the Gas Supply Cost (or commodity charges) and Delivery Charges. This rate adjustment request applies ONLY to delivery charges.
The Gas Supply Cost is the actual cost of the natural gas commodity. This commodity cost is passed along to customers without markup or profit and can represent approximately 35% of a residential customer’s monthly bill. On a quarterly basis, Columbia Gas adjusts its gas supply cost to reflect current market prices and actual costs. This cost is posted each quarter at ColumbiaGasKy.com/rates.
Delivery Charges are the base rates that Columbia Gas proposes to change. On the customer bill, they appear as two parts – the fixed Customer Charge and the Volumetric Delivery Charge. These rates recover the costs associated with making natural gas available to customers. These predominantly fixed costs include the essential investments in the people, equipment and materials needed to provide safe and reliable gas service around the clock every day of the year.
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What if I don’t want to get my natural gas from Columbia Gas anymore?
A customer may purchase the commodity (Gas Supply Cost portion of the bill) from a third-party supplier as a participant in the Customer CHOICE Program. As a participant, the customer may choose from a number of approved third-party natural gas suppliers. A list of those suppliers and their current prices can be found at https://psc.ky.gov/Home/ColumbiaChoice.
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Where can I get more information about rates?
Customers can find information about the delivery rate adjustment request at ColumbiaGasKY.com/rates and on the Kentucky PSC website — psc.ky.gov — referencing Case No. 2024-00092. A public notice of the original rate adjustment request and the public hearing was published in newspapers throughout our service area and mailed to certain customers. Customers may also request a copy of the public notices by calling the Customer Care Center at 1-800-432-9345.
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Current tariff
The Kentucky Public Service Commission approved rules and regulations that govern the operations and rates of Columbia Gas of Kentucky.
Customer Bill of Rights
As a residential customer of a regulated public utility in Kentucky, you are guaranteed rights.
Natural gas prices
Effective with December billing, Columbia Gas of Kentucky's gas supply cost is $4.7906 per Mcf, an increase from $2.9781 per Mcf in the previous quarter. This price will remain in effect until the next regular quarterly adjustment in March 2025.The Actual Cost Adjustment
Each quarterly gas cost adjustment is a projection of what Columbia Gas 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. This reconciliation is done to ensure that customers pay exactly what was paid by Columbia for their natural gas supplies. The reconciliation is known as an actual cost adjustment. The actual cost adjustment may be applied as either a charge or a credit, depending on whether Columbia overestimated the cost of natural gas purchased or underestimated the cost. This charge or credit is embedded in the gas supply cost paid by customers.
The Kentucky Public Service Commission must approve all gas cost adjustments.
Current Price Breakdown for Columbia-Supplied Customers and CHOICE Participants
If you are now supplied by Columbia Gas of Kentucky and were a participant in the Customer CHOICE ® Program during the previous 12 months, your cost will be $5.5175, an increase of $1.3721 per Mcf from the previous $4.1454. This price is applicable for those billing month(s) this year during which you were enrolled with a CHOICE supplier in the previous year. Your gas supply cost will then change to $4.7906 per Mcf (or the price in effect at that time) for the billing months this year during which Columbia Gas supplied your gas in 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 a change from a credit of ($0.9557) per Mcf to a credit of ($0.5518) per Mcf during the billing month(s) when you were supplied by Columbia Gas of Kentucky last year.