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Chattanooga Gas Annual Review Mechanism (ARM)

Chattanooga Gas filed a financial review of its 2020 revenues, operational costs and investments in critical system enhancements with the Tennessee Public Utility Commission (TPUC) on April 20, 2021.

We understand these are challenging times for the Chattanooga community and we are mindful of the impacts to our customers; however, infrastructure enhancements are crucial to safely and reliably meeting the region’s present and future natural gas needs.

As required by a settlement approved last year by the TPUC in the Chattanooga Gas’ Annual Review Mechanism (ARM) docket, this annual process adjusts rates upward or downward depending upon numerous factors occurring in the previous year.

It enables us to continue to serve our 69,000 customers in Hamilton and Bradley counties.

On August 9, 2021, TPUC approved Chattanooga Gas' request to adjust rates to support sensible investments made in 2020 that:

  • Strengthened the safety and reliability of the region’s pipeline infrastructure;
  • Supported increasing demand from residential customers; and
  • Provided greater capacity to high-growth residential, commercial and industrial areas. 

In 2020, the Chattanooga region experienced significant growth. Demand for reliable access to natural gas increased with more than 1,000 new residential and commercial customers connecting to the system. Chattanooga Gas continues providing the infrastructure needed to attract new business, helping  the snack food and automotive industries thrive and enabling  residential communities to expand. 

The system enhancements Chattanooga Gas made in 2020 help the company safely maintain service to customers when demand is at its highest, among other things. By taking this pragmatic action, Chattanooga Gas anticipates saving customers an estimated $40 million dollars over the next 10 years by reducing the need to employ more expensive gas supply alternatives. To minimize impact on customers’ bills, Chattanooga Gas is recommending capping charges over four years. 

Even after this rate adjustment, the average bill will still be more than $60 below what it was two decades ago after accounting for inflation.

Rate adjustments will go into effect September 1 and be reflected in the bill for October.