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

Decision was made in agreement with Tennessee Consumer Advocate

CHATTANOOGA, Tenn. – Aug. 9, 2021 – Upon completing Chattanooga Gas’ annual financial review, the Tennessee Public Utility Commission voted today to approve $11.5 million in rate adjustments, allowing the company to recover its 2020 revenue deficiency and reset future rates. The ruling, which follows a settlement agreement between Chattanooga Gas and the Tennessee Consumer Advocate, allows the company to recover costs incurred in 2020 while enhancing safety, improving reliability and expanding its system to support growth in the Chattanooga region.

Rate adjustments for the $11.5 million and any future revenue deficiencies will be recovered over the course of four years, with a voluntary cap of $6.8 million per year. This $6.8 million equates to an approximate 8.15% increase on the total bill for typical residential customers, or $4.17 per month. This will create rate stability and minimize the impact on monthly bills. Even with this rate adjustment, the average monthly bill will still be more than $60 below what it was two decades ago, after accounting for inflation.

“Demand for service from Chattanooga Gas increased in 2020, with more than 1,000 new residential and commercial customers connecting to our system,” said Pedro Cherry, president and CEO of Chattanooga Gas. “This settlement agreement acknowledges the prudent investments we have made to ensure we can continue to meet the region’s growing demand while maintaining the safety and reliability of our infrastructure and enhancing customer experience.”

In the years leading up to the coronavirus pandemic and throughout the last year and a half, Chattanooga Gas provided the infrastructure needed to attract new business to the area, especially in the snack food and automotive industries. Over the last 10 years, access to natural gas has helped to create and support more than 18,000 jobs and over $3.6 billion in local investment, according to the Consumer Energy Alliance.

The work Chattanooga Gas performed in 2020 will ensure its continued ability to bolster the local economy. This includes a system expansion to greater utilize the liquefied natural gas facility that helps the company maintain service to customers when demand is at its highest. By doing this, Chattanooga Gas anticipates saving customers an estimated $40 million over the next 10 years by reducing the need to employ more expensive gas supply alternatives.

“Access to clean, safe, reliable and affordable energy is a mainstay for healthy and prosperous communities,” said Cherry. “We appreciate the Consumer Advocate’s collaboration to ensure this rate adjustment enables us to make critical system enhancements while supporting the entire Chattanooga region.”

The new rates will now go into effect Sept. 1.

For more information about Chattanooga Gas 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 with approximately 666,000 retail customers through its companies that market natural gas. Other nonutility businesses include investments in interstate pipelines and ownership and operation of natural gas storage facilities. For more information, visit


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