Chattanooga Gas receives approval for investments in critical system enhancements 

CHATTANOOGA, Tenn. – August 14, 2023 – 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 operations and maintenance costs for work completed by Chattanooga Gas in 2022. 

The ruling, which aligns with past agreements made between Chattanooga Gas, the Tennessee Consumer Advocate, and the Chattanooga Regional Manufacturers Association (CRMA), allows the company to recover costs incurred in 2022 to meet the region’s growing demand for natural gas service while continuing to maintain a clean, safe, reliable and affordable natural gas system. As the Chattanooga area continues to experience unprecedented growth, the company is committed to investing in its infrastructure to help drive and expand the region’s economy.

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 2022 rate increase to the typical residential customer’s total average bill is $4.19 a month or a 6.31% increase.

“Our steadfast commitment at Chattanooga Gas is to provide clean, safe, reliable and affordable natural gas service that our customers expect and deserve,” said Pedro Cherry, president and CEO of Chattanooga Gas. “Our customers are at the center of everything we do. Every decision we make and action we take is done through the lens of what’s best for our customers whom we are privileged to serve. This ruling will ensure natural gas’ significant role in expanding our region’s ever-growing economy, while enhancing the customer experience.”

The capital investments Chattanooga Gas completed in 2022 will strengthen 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.

Chattanooga Gas residential customers may expect to see a projected average total bill for the upcoming winter months as follows: December 2023 of $99.90 as compared to December 2022 of $115.11; January 2024 of $126.43 as compared to January 2023 of $155.46; and February 2024 of $113.54 as compared to February 2023 of $128.11. Current natural gas costs reflect the impact of the current available supply and demand this winter heating season. Chattanooga Gas does not profit from these costs of gas 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 48% of a typical residential customer’s bill.

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 https://www.chattanoogagas.com/residential/ways-to-save/energy-saving-tips.html

In addition, the company offers energy assistance resources for qualified 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.