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Pricing and Rate Plans
Pricing and Rate Plans

Pricing and Rate Plans

Rates and Tariffs

A tariff is a legal document that specifies the charges, terms and conditions under which Chattanooga Gas provides service to its customers.

During its annual review mechanism (ARM) filing reviewing 2019 revenues, Chattanooga Gas Company received approval from the Tennessee Public Utility Commission on Monday, September 14, 2020, to increase customer rates by 7% of the total natural gas bill for the typical residential customer, or $2.98 per month. Commercial customers will receive a similar percentage increase. New rates take effect October 1, 2020.

The ruling allows the company to recover costs incurred in 2019 while enhancing safety, improving reliability and expanding its system to support the unprecedented growth experienced in the Chattanooga region.

The increase includes an adjustment due to $3.4 million in credits that are associated with the 2017 Tax Cuts and Jobs Act. This adjustment minimizes the impact of the rate increase on the community, thanks to a decision by the commission to accelerate the return of the $3.4 million in credits. Customers will receive the full benefit of the credit during the next year, from October 2020-September 2021, instead of receiving portions of the credit over each of the next several years.   

Natural gas prices remain at historically low levels. Customers pay 4.13% less now for natural gas than a decade ago. As compared to peak prices in 2008 which reached $1.20 per therm, natural gas remains a good value for customers. A report by the Consumer Energy Alliance found that energy savings – in addition to the availability of natural gas infrastructure critical to major industries  –  generated investment and economic development across Tennessee, creating and supporting at least 18,475 jobs in the Chattanooga region alone.                                                

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