Nearly 70,000 homeowners in Hamilton and Bradley counties who heat their houses with natural gas will pay an average of $4.21 more a month, starting this fall, if regulators approve an annual capital cost recovery plan submitted by Chattanooga Gas Co.
Chattanooga Gas, a subsidiary of the Atlanta-based Southern Co. Gas, is asking for an average 6.46% increase in the rates charged for residential customers to compensate for the utility’s investments over the past year to expand and upgrade its natural gas service.
In a filing Friday with the Tennessee Public Utilities Commission, Chattanooga Gas reported spending $8.4 million for capital improvements in 2023. But under its previous voluntary agreement with the state regulatory board, Chattanooga Gas is limiting the amount of capital recovery expenses put in its rates to $6.8 million, company spokesperson Jeff Wilson said.
“Our ARM (annual review mechanism) filing demonstrates our commitment in working with TPUC (Tennessee Public Utilities Commission) to bring safe, reliable and affordable natural gas service that our customers expect and deserve,” Pedro Cherry, president and CEO of Chattanooga Gas, said in a statement accompanying the rate filing Friday.
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