Chattanooga Gas receives approval for system enhancements to meet the area's growing needs
CHATTANOOGA, Tenn. – Aug. 18, 2025 – Upon completing Chattanooga Gas’ annual review mechanism (ARM), the Tennessee Public Utility Commission (TPUC) voted today to approve $3.8 million in rate adjustments for spent capital costs and recovery of costs for work completed in 2024. The ruling, which in accordance with a settlement agreement with the Tennessee Consumer Advocate, allows the company to recover costs incurred in 2024 to meet the region’s growing demand for natural gas service while continuing to maintain a clean, safe, reliable, and affordable natural gas system.
The 2025 base rate increase to the typical residential customer’s average bill is $2.34 a month or a 5.7% increase.
“Our unwavering dedication at Chattanooga Gas is to deliver natural gas service that not only meets our customers’ growing needs but also provides them the safe and reliable service they expect and deserve,” said Walt Farrell, president and CEO of Chattanooga Gas. “This agreement will help ensure natural gas can continue playing a vital role in supporting the growing economic expansion of our region, while also enhancing the experience for our customers."
The projected average Chattanooga Gas residential customer may expect to see an average total bill for the upcoming winter months as follows: December 2025 of $114.03 as compared to December 2024 of $89.83; January 2026 of $147.43 as compared to January 2025 of $135.85; and February 2026 of $140.58 as compared to February 2025 of $121.56. Current natural gas commodity 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 42% 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 https://www.chattanoogagas.com/residential/ways-to-save/energy-saving-tips.html
In addition, the company offers energy assistance resources for 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 Sept. 1. For more information about Chattanooga Gas’ ARM filing, visit chattanoogagas.com/arm.
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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 72,000 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 chattanoogagas.com.
About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE: SO), one of America’s premier energy companies. Southern Company Gas serves approximately 4.4 million natural gas utility customers through its regulated distribution companies in four states and more than 600,000 retail customers through its natural gas marketing businesses. The company also invests in interstate pipelines, provides asset management for natural gas wholesale customers, and owns and operates natural gas storage facilities. For more information, visit southerncompanygas.com.
Media Contact:
DeAllous Smith
404-922-6886
dealsmit@southernco.com