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Tennessee Public Utility Commission approves rate adjustments for investments in critical system enhancements

CHATTANOOGA, Tenn. – Sept. 14, 2020 – The Tennessee Public Utility Commission (TPUC) voted today to approve $4.8 million in rate adjustments following Chattanooga Gas’ annual financial review. 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 adjustments represent an approximate 7% increase on the total bill for typical residential customers, or $2.98 per month.

The impact of the rate adjustment on the community was minimized thanks to a decision by the TPUC to accelerate the return of $3.4 million in credits stemming from the 2017 Tax Cuts and Jobs Act (TCJA) to customers.

“Today’s ruling acknowledges we have made prudent investments to ensure the safety and reliability of our infrastructure, meet our customers’ demands and support growth in the Chattanooga region,” said Pedro Cherry, president and CEO of Chattanooga Gas. “These rate adjustments allow us to better serve the community. As the region works to recover from the economic impacts of the coronavirus, investments like these will enable us to serve as a key ally in efforts to rebound.”

Since 2010, natural gas bills in Chattanooga have decreased significantly. Even with the approved increase, the typical residential customer’s total average bill will be 4.13% less than a decade ago. A report by the Consumer Energy Alliance recently found that these 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.

“We are mindful of the impact any increase can have on customers during this unprecedented time, and we appreciate the Consumer Advocate’s collaboration to ensure this rate adjustment truly benefits all of the Chattanooga region,” said Cherry. “Access to clean, safe, reliable and affordable energy is critical to helping communities thrive.”

The ARM filing process was initially delayed, at the request of Chattanooga Gas, due to the challenges the coronavirus pandemic presented to customers. The new rates will now go into effect Oct. 1.

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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 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, please see


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 4.2 million natural gas utility customers through its regulated distribution companies in four states and approximately 700,000 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:
Mekka Parish