Staff file photo / Markers denoting underground Chattanooga Gas Co. lines are seen along the Wauhatchie Trail on the foot of Lookout Mountain in 2014.The typical residential customer of Chattanooga Gas Co. will pay about 25% more in their monthly heating bills this winter compared to last year, reflecting higher natural gas prices and the cost of investments the utility has made to maintain and upgrade its natural gas service in Chattanooga and Cleveland, Tennessee.
The Tennessee Public Utility Commission voted Monday to approve the company’s request for a 5.66% increase in its Annual Review Mechanism that allows utilities to recover capital investments needed to maintain gas delivery service to its customers. The rate increase adopted by state regulators will add $4.20 to the average residential gas bill and be effective Sept. 1.
Additionally, natural gas prices, which are reflected in the company’s purchased gas adjustment rates, will be $13.05 a month higher than they were a year ago for the typical customer in September. Combined, the rate changes will boost gas bills for the typical customer by $17.25 next month compared with a year ago.
Rate increases are projected to be even higher in the winter months, when gas consumption jumps for residential users. Subject to varying weather and usage, the average Chattanooga Gas customer is projected to be billed by Chattanooga Gas for $125.56 in December (up from $10.75 a year ago) $167.05 next January (up from $133.47 a year earlier) and $158.54 in February (up from $121.54 a year earlier).
“Current natural gas costs reflect the impact of supply constraints and higher demand this winter heating season,” Chattanooga Gas Co. said in a notice of its plans to raise rates effective Sept. 1. “Chattanooga Gas does not profit from these increased costs and instead passes on the market cost directly to customers.”