Columbia Gas customers could pay up to $20 more a month under rate settlement

Columbia Gas of Ohio customers will have to pay more to keep warm.

Exactly how much is a matter of a debate.

The Public Utilities Commission of Ohio on Thursday signed off on a settlement it says will result in residential customers paying $3 or $4 more a month in the fixed monthly cost for service. The settlement does not cover the cost of the gas.

Columbia Gas says the settlement will raise those fixed rates for residential customers by $3.76 per month in time for the March bill.

But one consumer group says the increase is more like $20 a month with fixed costs going from $37 a month to as much as $58.

“The Environmental Law & Policy Center is very disappointed in the Commission’s decision today," the group said in a statement. "Raising the fixed customer charge to $58 per month guarantees utility profits at the expense of consumers. It particularly hurts low-income customers who typically use less gas."

Columbia Gas sees it differently.

"This increase request reflects the costs necessary to continue providing safe, affordable, reliable natural gas service," the company said in a statement.

Under terms of the settlement, Columbia Gas is authorized to file for rates that will lead to an increase in base distribution rates of $68.2 million annually, the PUCO says. That's about a third of the $221.4 million sought by Columba Gas when it filed in initial request for a rate increase in June 2021.

As part of the settlement, Columbia Gas will continue its low-income home weatherization program known as Warm Choice. Columbia Gas will provide $70 million in funding over the next five years.

Columbia Gas also will implement a $3.5 million bill-payment assistance program that regulators say should be funded by Columbia Gas shareholders and not in part by customers.

“The settlement agreement in this case is a reasonable resolution to this case that balances impacts to monthly bills while supporting utility investments in safety and economic development programs,” PUCO Chair Jenifer French said in a statement.

The settlement also authorizes Columbia Gas to continue with programs that allow it to recover the costs of replacing aging gas lines and other infrastructure, along with the costs of capital investments over the next five years. The settlement reduces future charges by a total of $482 million compared with what Columbia Gas sought, according to the PUCO.

The infrastructure fee can rise to a maximum of $8.47 in 2027 while the capital investment fees can rise to as much as $8.74 in 2027. Any costs under these programs are subject to PUCO review and approval.

It's these two funds plus the increase in the fixed monthly charges that the Environmental Law & Policy Center says amount to $20.

Columbia Gas did acknowledge that the additional fees that are part of the settlement.

"Columbia has also been given the authority to invest in system upgrades and continuously improve the safety and reliability of our infrastructure," the company said. "These investments, which the commission must review and approve, could result in small increases not to exceed a total fixed charge of $56.51 in 2028. Rates could be less than this, depending upon the level of capital investments in Columbia’s system to improve safety and reliability over the next five years."

The Ohio Consumers' Counsel said it too wasn't happy with the PUCO decision.

“We are disappointed that the PUCO, in addressing the settlement that we and others negotiated, eliminated a Columbia commitment that we bargained for to further protect more than a $100 million in reduced energy efficiency charges to consumers," the state Consumers' Counsel said in a statement. "Otherwise, we appreciated the efforts by parties over nearly half a year to find a path to a settlement that significantly benefits consumers compared to Columbia’s original rate increase request.” 

Columbia maintains more than 20,000 miles of natural gas pipelines and facilities that serve its 1.4 million customers in 61 of Ohio's 88 counties.

mawilliams@dispatch.com

@BizMarkWilliams