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Chattanooga Gas rate adjustments for investments in critical system enhancements approved by Tennessee Public Utility Commission

CHATTANOOGA, Tenn. – Aug. 8, 2022 – Upon completing Chattanooga Gas’ annual review mechanism (ARM), the Tennessee Public Utility Commission (TPUC) voted today to approve $6.8 million in rate adjustments in spent capital costs and recovery of costs for work completed in 2021. The ruling, which aligns with agreements made between Chattanooga Gas, the Tennessee Consumer Advocate, and the Chattanooga Regional Manufacturers Association (CRMA), allows the company to recover costs incurred in 2021 enhancing safety, improving reliability, and expanding its system to support growth in the Chattanooga region.

To minimize impact on customers’ bills, Chattanooga Gas is limiting the 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 2022 rate increase to the typical residential customer’s total average bill is $4.20 a month or a 5.66% increase.

“As the Chattanooga area continues to grow, it's incredibly important we continue to make smart investments needed for our customers to have clean, safe, reliable and affordable natural gas,” said Pedro Cherry, president and CEO of Chattanooga Gas. “Working constructively with TPUC, we are committed to building infrastructure that will help ensure every customer, whether at home or running a business, has the natural gas they need to thrive. This agreement ensures we can continue to meet the region’s growing demand while maintaining safety, reliability and enhancing the customer experience.”

The work Chattanooga Gas completed in 2021 will ensure its ongoing ability to meet the supply and demand growth, especially during the coldest days of the year when customers rely on natural gas the most.

The average Chattanooga Gas residential customer may expect to see an average total bill for the upcoming winter months as follows: December 2022 of $125.56 as compared to December 2021 of $100.74; January 2023 of $167.05 as compared to January 2022 of $133.47; and February 2023 of $158.54 as compared to February 2022 of $121.54. Current natural gas costs reflect the impact of supply constraints and higher demand. Chattanooga Gas does not profit from these increased costs and instead passes on the market cost directly to customers. The current per therm price customers pay for natural gas delivered by Chattanooga Gas comprises approximately 70% of a typical residential customer’s bill due to economic factors that have affected the commodity’s market price.

Chattanooga Gas is committed to helping customers save money on their energy bills and the company has programs and services that can help make homes more energy efficient. Find energy efficiency tips and programs at

In addition, the company offers energy assistance resources for customers to help offset their natural gas bill at

The new rates will now go into effect Sept. 1. For more information about Chattanooga Gas’ ARM filing, visit

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 68,000 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

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 4.3 million natural gas utility customers through its regulated distribution companies in four states and approximately 600,000 retail customers through its companies that market natural gas. Other nonutility businesses include investments in interstate pipelines, asset management for natural gas wholesale customers and ownership and operation of natural gas storage facilities. For more information, visit

Media Contact
Holly Lovett
c: 404-275-9321