Chattanooga Gas Co. increases average monthly bill by $4.21

Starting September 1, monthly bills for the average Chattanooga Gas Co. residential customer will increase by $4.21.

The Tennessee Public Utility Commission approved the increase on Monday, in addition to similar increases the state regulator approved for the company in 2022 and 2023. In a statement, Chattanooga Gas said the price increase will allow the company to recoup costs it incurred in 2023 to meet the region’s growing need for natural gas, which customers can use for heating, drying clothes and cooking food.

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“At Chattanooga Gas, we are committed to providing clean, safe, reliable and affordable natural gas services that exceed our customers’ expectations, especially during times of strong growth in the Chattanooga area,” said Pedro Cherry, president and CEO of Chattanooga Gas, in a press release posted online. “This agreement ensures that natural gas will remain a critical resource for decades to come and enables our infrastructure to provide the resilience and reliability our customers need even on the coldest days, all at an affordable cost.”

The company projects that the average residential customer could receive a bill of $89.83 in December, up from $87.86 in December 2023. In January, they could expect a bill of $135.85, up from $129.78 last year, and in February, $121.56, up from $115.87.

As a regulated energy supplier, the company cannot profit from the cost of natural gas, it said. That means it passes the costs on to customers without a markup.

In its April request to the state, Chattanooga Gas Co. said it is experiencing unprecedented growth and expects it to continue for the foreseeable future. Over the past decade, the annual number of new residential and commercial customers has more than doubled, the company said. In 2023, more than 1,100 new customers will be connected to the system, the company said.

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To meet future demand, Chattanooga Gas has improved its pipeline system to increase safety and reliability and has increased capacity in areas with high residential, commercial and industrial growth, the statement said.

Chattanooga Gas Co. is a subsidiary of Southern Company Gas in Atlanta and has 70,500 customers in Hamilton and Bradley counties. Its service area includes Chattanooga, Cleveland, Red Bank, East Ridge, Lookout Mountain and Signal Mountain.

Contact David Floyd at [email protected] or 423-757-6249.