PA Environment Digest Blog: PUC Approves Reduced Columbia Gas Rate Hike Of 6.05%, And A Per Month Residential Customer Charge Increase Of 33%

On December 4, the Public Utility Commission voted to approve modified natural gas distribution rate changes for Columbia Gas of Pennsylvania Inc. (Columbia Gas), cutting the utility’s originally requested increase by nearly half and adopting a series of measures designed to strengthen consumer protections, support at-risk households and guide future safety improvements.

Columbia Gas provides natural gas distribution service to approximately 445,000 residential, commercial and industrial customers in 26 counties across its Pennsylvania service territory.

Substantially Reduced Rate Changes

Under the Opinion and Order, the Commission significantly reduced Columbia Gas’s requested revenue increase.

Instead of the company’s proposed annual natural gas distribution revenue increase of approximately $110.5 million (12%), the Commission approved an annual revenue increase of approximately $55.6 million (6.05%) over total distribution operating revenues at present rates.

The new rates, consistent with the Commission’s order, will take effect on or after January 1, 2026.

Residential Customer Charge

The Commission substantially reduced Columbia Gas’s proposal to raise the residential customer charge from $17.25 to $31.97 (85%) per month.

Instead, the Commission approved a more gradual adjustment, setting the charge at $23 per month (33%).

The Commission noted this $23 per month residential customer charge is based upon the Company’s originally proposed annual revenue increase of $110.5 million.

Therefore, the actual monthly customer charge will be scaled back based upon the revenue increase of $55.6 million that was approved by the Commission.

The actual final monthly residential customer charge will be known once Columbia Gas makes its compliance tariff filing and the associated detailed calculations that were directed by the Commission in its order.

Customer and Safety Improvements

The Commission’s final Opinion and Order will include several consumer-focused provisions aimed at improving service quality, expanding access to assistance programs, and enhancing long-term safety and affordability:

-- Enhanced customer service oversight, including development of a structured root cause analysis process to identify complaint patterns, strengthen training, and more quickly resolve recurring issues.

-- Expanded Customer Assistance Program (CAP) screening, requiring income screening for new and moving customers, along with periodic screening of existing customers during non-emergency calls, to better connect eligible households with assistance.

-- Implementation of a two-year CAP Arrearage Pilot Program, with an annual budget of $100,000, providing grants to help customers who were removed from CAP due to arrears be able to re-enter the program.

-- Direction to Review and improve payment plan policies by requiring Columbia Gas to bring these issues to its Universal Service Advisory Committee (USAC) within three months, and to address them in its next Universal Service and Energy Conservation Plan, given the low enrollment of eligible low-income customers in CAP.

-- Approval of the Three-Year Energy Efficiency (EE) Plan, supporting cost-effective measures to reduce natural gas usage for residential and small business customers.

-- Initiation of a Methane Detection Feasibility Study, evaluating Smart Remote Methane Detectors (SRMDs) in conjunction with the company’s planned advanced metering infrastructure rollout.

-- Modifying the Weather Normalization Adjustment (WNA), to continue as a pilot program, and to also put additional consumer protections into place, including removing the month of May from WNA calculations and expanding the “deadband” protection percentage of Actual Heating Degree Days in which the WNA calculations would not apply.

-- Denying Columbia Gas’ Revenue Normalization Adjustment (RNA) proposal, concluding that the utility’s existing fixed charges and other ratemaking tools already provide sufficient revenue stability.

A Final Opinion and Order is currently being drafted, based on motions made by Commissioner Yanora and Commissioner Zerfuss at the meeting.

Full details of all the various changes initiated by the Commission will be available in the coming days when the Final Opinion and Order is posted to the PUC public docket for this case.

Documents related to this case are available at PUC Docket No.: R-2025-3053499.

Click Here for the PUC announcement.

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Nov. 29 to Dec. 5 - Eight New Shale Gas Well Casing/Cementing Failures; 329,900 Gallons Of Pipeline Drilling Fluid Lost To Mine Voids; Violations Sent For Not Reporting On 988 Conventional Wells [PaEN]

-- DEP: CNX Gas Suffers Shale Gas Well Casing Failure While Zipper Fracking 3 Wells In West Finley Twp., Washington County; CNX Waited Over 10 Hours To Notify DEP [PaEN]

-- DEP Issued Violations To Repsol Oil & Gas For Casing/Cementing Failures In 4 Shale Gas Wells After A 34-Hour Uncontrolled Wastewater Release At The Broadleaf Well Pad In Bradford County [PaEN]

-- DEP Issued Violations To Chesapeake Appalachia For Casing/Cementing Failures In 4 Shale Gas Wells At The Linski Well Pad In Bradford County [PaEN]

-- DEP: MarkWest Liberty Midstream Pipeline Construction Results In 36,000 And 29,000 Gallon Spills Into Coal Mine Voids Under Washington County; Total Of 329,900 Gallons Lost So Far On This Project [PaEN]

-- DEP Issued 13 Conventional Oil & Gas Well Owners Violations Covering Up To 988 Wells For Failing To Submit Annual Production, Waste Generation/Disposal Or Well Integrity Reports; A Step To Well Abandonment [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - December 6 [PaEN]

-- DEP Invites Comments On Revised Oil & Gas Erosion & Sedimentation, Stormwater Management Technical Guidance [PaEN]

-- DEP Accepting Comments On Air Quality Permit For Hill Top Energy Center Natural Gas Power Plant In Greene County To Feed A.I. Data Centers [PaEN]