Current tariff
The Pennsylvania Public Utility Commission approves rules and regulations that govern operations and rates of Columbia Gas of Pennsylvania.
Learn about the rate case process
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Announcer: At Columbia Gas of Pennsylvania, we deliver the natural gas you use in so many ways throughout your home. We’re also responsible for maintaining the thousands of miles of pipes through which this gas travels.
We do our best to keep the rates you pay for delivery and maintenance as low as possible. But, like everything, gas pipes deteriorate over time, and eventually need to be replaced or they could become unsafe.
Right now, to keep your gas safely flowing, we’re replacing more than 2,400 miles of older pipes in our system… and big improvement projects like this mean an increase in necessary expenses.
For other businesses… when expenses go up, they can quickly raise prices, and set them wherever they see fit.
We don’t do that.
As a public utility, we must prove that an increase is absolutely necessary. We do this through a formalized process called a “Rate Case,” …which is actually a legal proceeding overseen by the Public Utility Commission.
It relies on input not only from us, but all interested parties—including agencies, organizations, businesses and you, the customer—to determine whether a rate increase is needed and what rate is fair.
Here’s how it works.
We start by supplying thousands of pages of supporting documents, outlining our proposed rates and terms of service, our investments, and expenses such as labor, equipment and major projects, like our pipeline replacement program.
Numerous groups within the Public Utility Commission, and other state agencies, review and consider this information, as well as input from everyone else involved.
They pay special attention to the effect a rate increase would have on customers. Your input is welcome, too, and we’ll notify you of ways to participate.
The entire process takes about nine months, as discussions are held and our case is reviewed and revised many times with the goal of being fair to everyone. As a result, the rates and terms of service ultimately approved by the Public Utility Commission are often different than what was originally requested.
Thanks to their oversight, and input from interested parties like you, you can be sure you’re paying a fair price for the delivery of your natural gas. You’re also paying a fair price for the actual natural gas you use because, by law, it cannot be marked up, and we make no profit on it.
Still, the cost of the natural gas you use makes up approximately half of your bill. So taking these simple steps to improve energy efficiency in your home can help reduce what you pay each month.
If you have any questions about things like ongoing rate cases and projects, you’ll find plenty of information right here on our website. Or you can give us a call. We’re always here to help.
At Columbia Gas of Pennsylvania, we’re working hard to safely, reliably and affordably deliver your natural gas—every day.
2024 Rate Adjustment Approval Common Questions
On November 21, 2024, the Pennsylvania Public Utility Commission (PUC) voted to approve a settlement among Columbia Gas of Pennsylvania and the parties in the company’s base rate case originally filed on March 15, 2024. The rate case supports the Company’s continued and significant improvements to its natural gas distribution system. The base rate adjustment approval allows an increase in annual revenues of approximately $74 million. The new rates apply to gas service rendered on or after December 14, 2024.
What is a base rate case?
Columbia Gas sought approval from the PUC to adjust the customer charge and distribution usage charges, which are commonly referred to as base rates.
Unlike most businesses, which can change the price of their product/service without outside approval, regulated energy providers—like Columbia Gas—must submit a detailed request to change their base rates. The request includes evidence to support the increase and demonstrate how it benefits customers.
The process—referred to as a rate case—must be decided by the Pennsylvania Public Utility Commission (PUC).
Customers have had the opportunity to have a voice in the review process in multiple ways, including through written comments and attending virtual public hearings. Residential customers are represented throughout the process by various consumer advocacy organizations that participate in the proceedings.
This rate case decision is public. All of the documents that were part of this rate case can be found on the PUC’s website here. The Docket Number for this rate case is R-2024-3046519.
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What are base rates?
Base rates generate the revenue needed to recover the costs to repair, upgrade, and operate Columbia Gas of Pennsylvania’s natural gas delivery system. This system includes more than 7,700 miles of pipelines, regulator stations, meters and other facilities. This charge is separate from natural gas commodity costs, which generally make up about a third of the total bill. As a regulated utility, Columbia Gas purchases gas on the wholesale market and, under Pennsylvania law, passes those natural gas costs on to its customers without mark-up or profit.
Base rates are made up of a customer charge and a usage-based distribution charge (per therm rate). Columbia Gas’s base rates also include a Weather Normalization Adjustment (WNA).
- The customer charge is a flat rate customers pay on each bill regardless of how much gas Columbia Gas delivers to their home or business.
- The distribution usage charge is based on how much gas Columbia Gas delivers to their home or business.
- A WNA is an adjustment on the distribution portion of a customer’s bill to reflect normal weather levels if temperatures are 3% greater or 3% lower than normal during the winter heating season.
The customer charge and the distribution usage charge are the only source of revenue for the recovery of Columbia Gas’s operating costs. All of Columbia Gas’s investments in pipes, meters and all of its expenses that support safe and reliable gas service – including responding to gas-related emergencies – are recovered through the customer charge and distribution usage charge.
The Gas Commodity Charge, which is separate from base rate charges, recovers the cost of the natural gas used by a customer. Natural gas costs, which make up around a third of the total bill, are passed through to customers on a dollar-for-dollar basis. Under Pennsylvania law, utilities cannot profit on the gas commodity charge.
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Why does Columbia Gas need to adjust its rates?
To continue to provide safe, affordable and reliable natural gas service, we must invest in our system to upgrade aging infrastructure, just as investments are made in bridges, roads and other infrastructure in our cities, towns and communities.
Since 2007, Columbia Gas has invested over $3.7 billion to modernize and expand our natural gas distribution system in Pennsylvania. Of that amount, approximately $2.8 billion was dedicated to replacing more than 1,408 miles of aging bare steel and cast iron pipe.
In 2024 alone, we plan to invest $398 million in Pennsylvania, with $330 million dedicated to upgrading aging underground infrastructure throughout the 26 Pennsylvania counties where we provide natural gas service.
The rate adjustment set by the PUC represents a reasonable return for Columbia Gas’s significant investment in Pennsylvania.
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What do you mean by aging infrastructure? Are we safe?
Yes, our system is safe, as evidenced by our ability to address leaks appropriately, as well as through other operational improvements including more frequent leakage surveys and better emergency leak response. However, we must be a prudent operator and address the systematic replacement of our unprotected bare steel, cast iron, and wrought iron facilities.
After decades of providing service to our parents and grandparents, some of our pipes must be replaced to ensure continued safe and reliable service. These pipelines have served us well, but it has come to the point where it is more cost effective for us to replace the pipe now, rather than repair the pipe only to replace it in the near future.
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What does this mean for my bill?
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Is this rate increase fair to Columbia Gas customers?
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When will this adjustment impact my bill?
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Doesn’t Columbia Gas already adjust my rates every quarter?
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When was the last time Columbia Gas asked to adjust its rates?
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Why did Columbia Gas request this increase so soon after the last rate adjustment?
Safety is Columbia Gas’s number one priority, and we are committed to our continued investment in the safest possible natural gas delivery system for our customers and communities. Columbia Gas is investing over $330 million to replace aging pipe in 2024 alone. This rate settlement represents a reasonable return for this investment in replacing and upgrading our natural gas distribution system.
Additionally, Columbia Gas is focused on safely operating and maintaining our pipeline system, meeting or exceeding all federal and state requirements. This base rate request incorporates expenses associated with safety initiatives, including enhanced training and technological system improvements to reduce the amount of damage done to Columbia Gas of Pennsylvania’s distribution facilities by third parties, the number one risk to the safety of our system.
The costs of these replacement projects have also increased significantly due to higher contractor and paving costs, locations of certain projects in highly populated areas and larger-diameter pipes needed to carry gas throughout our large service territory.
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What are the customer benefits in this rate request?
Infrastructure Upgrades. We are enhancing the safety of our system through our pipeline replacement program. We will continue to be a leader in pipeline replacement in Pennsylvania and invest millions of dollars each year to replace aging distribution pipelines. We remain committed to providing safe, reliable, and efficient natural gas distribution service, and we plan to dedicate more than $330 million in 2024 just to replace aging infrastructure.
System Reliability. Upgrades to the system with plastic and cathodically protected steel pipe not only maintain safety, but also provide an upgraded system design ensuring more reliable service during extreme cold temperatures. The new system also provides more flexibility in adding new, high efficiency equipment and allows for the installation of smaller, less expensive interior piping system for customers.
Pipeline Maintenance Enhancements. System maintenance practices will further improve the safe and reliable delivery of natural gas, such as enhanced training (including a new training facility that opened in mid-2016) and system improvements to reduce the amount of damage done to our distribution facilities by external parties, the number one risk to the safety of our system.
Job Creation. Our pipeline replacement program is adding jobs, both full-time employees (engineers, engineering technicians, land agents and construction inspectors) as well as contractors who perform the actual pipe replacement (including laborers, equipment operators, crew leaders and support staff), and associated support services such as paving, traffic control, trucking, sand and gravel and a myriad of other material purchases and support activities.
We take our commitment to our local communities seriously, and we are proud of the nearly 700 full-time employees and 1,050 contractors across the state of Pennsylvania who comprise the Columbia Gas team.
Enhanced Energy Efficiency Programs. Columbia Gas offers programs to increase awareness of and participation in the company’s Low Income Usage Reduction and Audits & Rebates programs, which are designed to help Columbia Gas’s residential customers reduce their energy consumption, improve efficiency, and conserve resources. Reduced spending on energy shifts spending to other parts of the economy which can have both an economic multiplier effect and help with regional job creation.
Thank you for your response.
Why are you increasing rates while inflation and higher costs are affecting Pennsylvania residents?
Safety is Columbia Gas’s number one priority, and we are committed to our continued investment in the safest possible natural gas delivery system for our customers and communities.
Columbia Gas is investing $330 million to replace aging pipe in Pennsylvania in 2024 alone. This rate adjust provides for a reasonable return for this investment in replacing and upgrading our natural gas distribution system.
Overall, consumers are currently dealing with rising prices on everything from gasoline to groceries. It is evident that the costs for everyday essentials have been steeply on the rise across the nation. A similar trend can be seen in the energy markets, which is expected to result in continued higher prices for natural gas this heating season.
Natural gas costs are passed through to customers on a dollar-for-dollar basis and under Maryland law, utilities cannot profit on the gas commodity charge. If our customers are experiencing financial challenges, Columbia Gas has very specific programs to help customers manage their energy bills to stay safe and warm in their homes.
There are a range of options and tools available to help customers with their bills, and we encourage them to contact us to help identify the assistance that may best meet their needs. Customers can visitwww.ColumbiaGasPA.com/assistance to learn more about our programs.
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What about customers who have trouble paying their bills?
The Pennsylvania Public Utility Commission (PUC) determines what Columbia Gas’s rates will be. The decision to ask the PUC to approve a rate adjustment was not made lightly. We have a responsibility to continue the safe and reliable operation of our system, and that includes assessing the financial need to support our critical infrastructure replacement program and identify additional system risks while maintaining the safe operations of our system across our entire service area.
At all times, Columbia Gas is committed to providing our low-income customers with the tools, resources, and programs to stay safe and warm in their homes. These programs help customers mitigate the impact of a rate adjustment or financial changes due to economic conditions. More information can be found on our website. (www.columbiagaspa.com/paymentplans)
Budget Payment Plan
Available to all Columbia Gas customers, the Budget Payment Plan allows customers to spread annual bills evenly across the year instead of paying account balances each month, helping to eliminate high winter bills. The budget year begins in May, but customers can enroll any time during the year.
Low Income Home Energy Assistance Program (LIHEAP)
Columbia Gas serves as a link to federal energy assistance funds which provide help with residential heating costs. These energy grants do not have to be repaid by the customer. Enrollment guidelines for LIHEAP, which are revised each new heating season, are based on household size and income.
Customer Assistance Program (CAP)
The Customer Assistance Program offers affordable payment plans for residential customers with low incomes and long-term bill payment difficulties. CAP features reduced monthly payments for current bills for income-eligible customers, as well as debt forgiveness for prior balances.
Customer Assistance, Referral & Evaluation Services (CARES)
The CARES program helps customers who have a true inability to pay their utility bills and are facing additional challenges.
Columbia Gas Hardship Fund
Administered by Dollar Energy Fund, this program provides grants up to $500 per year to low-income residential customers to pay off past-due bills or restore service. This program is available if customers have exhausted all other available assistance programs.
WarmWise: Low Income Usage Reduction Program (LIURP)
Columbia Gas’s Low Income Usage Reduction Program (LIURP) provides income-eligible customers with no-charge home weatherization assistance to help reduce annual heating costs. LIURP identifies improved weatherization opportunities in the home and then installs the most cost-effective measures to reduce consumption.
WarmWise: Audits & Rebates
Audits & Rebates offers a free, comprehensive in-home energy audit identifying and recommending energy saving improvements throughout the home to income-qualified customers. Customers can also choose to take advantage of rebates for energy saving improvements.
WarmWise: Online Energy Audit & Kit Program
Available to all customers, regardless of income, the Online Energy Audit and Kit Program offers customers who complete an online home energy audit a free energy efficiency kit.
WarmWise: Energy Efficiency Rebates Program
The WarmWise Energy Efficiency Rebates Program offers rebates to customers when they upgrade to a ENERGY STAR-certified smart thermostat or qualifying furnace, boiler, or tankless water heater.
Crisis – Emergency Energy Assistance
A component of the Low Income Home Energy Assistance Program (LIHEAP), Crisis Emergency Energy Assistance provides funds for customers in emergency situations and who are in danger of losing their heat.
More information can be found on our website at www.columbiagaspa.com/assistance.
Thank you for your response.
How is Columbia Gas trying to reduce costs for customers?
Columbia Gas continues to focus on working efficiently. We have taken the following steps to save money and will continue to look for additional ways to make the most cost-effective decisions for our customers:
- Technological investments, such as investing in Automated Meter Reading technology, to reduce the costs associated with reading meters manually.
- Long-term contracts with our pipeline contractors, which ensure affordable and predictable rates for their services.
- Partnerships with our sister gas distribution companies in Ohio, Maryland, Kentucky, and Virginia, as well as our parent company NiSource, to save money through consolidated, in-house services as well as to gain economies of scale through the ordering of supplies, materials, and contractors.
Our approach is working. The average total bill for a residential customer will still be 28 percent lower than it was 20 years ago, when adjusted for inflation.
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