Homeowners in Hamilton and Bradley counties who heat their houses with natural gas will pay an average $4.19 more a month, starting this fall, if regulators approve an annual capital cost recovery plan submitted Thursday by Chattanooga Gas Co.
Chattanooga Gas, a subsidiary of the Atlanta-based Southern Co., is asking for an average 6.22% increase in average rates to compensate for the utility’s investments over the past year to expand and upgrade its service.
“At Chattanooga Gas, we are committed to making strategic infrastructure investments which enable us to meet the evolving needs of our customers and support the ever-growing Chattanooga-area economy,” Pedro Cherry, president and CEO of Chattanooga Gas, said in a statement accompanying the company’s filing to the Tennessee Public Utility Commission. “Our ARM (annual review mechanism) filing demonstrates our commitment in working with TPUC to bring safe, reliable and affordable natural gas service that our customers expect and deserve.”
Chattanooga Gas filed a financial review of its 2022 revenues, operational costs and investments with the Tennessee Public Utility Commission. The company says it seeks to adjust 2023 rates in order to recoup the cost of work performed to meet the region’s growing demand for natural gas service while continuing to maintain a safe, reliable and affordable natural gas system.
The current filing requests rate adjustments, citing investment initiatives that strengthened the safety and reliability of Chattanooga Gas’ infrastructure, even on the coldest days of the year. On Dec. 23, 2022, Chattanooga Gas customers used 6% more natural gas than the previous winter’s peak, marking one of the highest natural gas usage days in company history.