Chattanooga Gas receives approval for investments in critical system enhancements
Chattanooga, Tenn. – August 12, 2024 – Upon completing Chattanooga Gas’ annual review mechanism (ARM), the Tennessee Public Utility Commission (TPUC) voted today to approve $6.8 million in rate adjustments for spent capital costs and recovery of costs for work completed in 2023. The ruling, which aligns with past agreements made between Chattanooga Gas and the Tennessee Consumer Advocate, allows the company to recover costs incurred in 2023 to meet the region’s growing demand for natural gas service while continuing to maintain a clean, safe, reliable, and affordable natural gas system.
To minimize the impact on customers’ bills, Chattanooga Gas is limiting the full rate request based on the voluntary rate cap proposed by the Company and approved by TPUC in 2021 for rate filings made in 2021 through 2024. Under this voluntary rate cap, the 2023 rate increase to the typical residential customer’s total average bill is $4.21 a month or a 6.46% increase.
"At Chattanooga Gas, we are dedicated to delivering clean, safe, reliable, and affordable natural gas services that exceed our customers' expectations, especially during times of significant growth in the Chattanooga area," said Pedro Cherry, president and CEO of Chattanooga Gas. "This agreement guarantees that natural gas will remain a vital resource for decades, enabling our infrastructure to provide the resilience and dependability our customers require, even on the coldest days, all while keeping costs affordable."
For the upcoming winter months, the projected average Chattanooga Gas residential customer may expect to see an average total bill for the upcoming winter months as follows: December 2024 of $89.83 as compared to December 2023 of $87.86; January 2025 of $135.85 as compared to January 2024 of $129.78; and February 2025 of 121.56 as compared to February 2024 of $115.87.
The current per therm price customers pay for natural gas delivered by Chattanooga Gas makes up approximately 40% of a typical customer's bill. The natural gas costs billed to customers reflect the market price of natural gas related to the available supply and demand. As a regulated utility, Chattanooga Gas does not and cannot profit from the cost of natural gas. The price we pay for natural gas is on passed on to customers without markup.
Though we cannot change the market price of natural gas, Chattanooga Gas is committed to helping customers save money on their energy bills and has programs and services that can help make homes more energy efficient. Find energy efficiency tips and programs at https://www.chattanoogagas.com/residential/ways-to-save/energy-saving-tips.html
In addition, the company offers energy assistance resources for customers to help offset their natural gas bill at https://www.chattanoogagas.com/residential/billing-and-payment-options/energy-assistance-programs.html
The approved new rates will go into effect September 1. For more information about Chattanooga Gas’ ARM filing, visit chattanoogagas.com/arm.
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About Chattanooga Gas
Chattanooga Gas is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Chattanooga Gas provides retail natural gas sales and transportation services to approximately 70,500 customers in Hamilton and Bradley counties in southeast Tennessee. The Chattanooga Gas service area includes the communities of Chattanooga, Cleveland, Red Bank, East Ridge, Lookout Mountain and Signal Mountain. For more information, visit chattanoogagas.com.
About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE:SO), America’s premier energy company. Southern Company Gas serves approximately 4.4 million natural gas utility customers through its regulated distribution companies in four states with more than 600,000 retail customers through its companies that market natural gas. Other nonutility businesses include investments in interstate pipelines and ownership and operation of natural gas storage facilities. For more information, visit southerncompanygas.com.
Media Contacts
Holly Lovett
404.275.9321
hcrawfor@southernco.com