Columbia Gas of Ohio customers will soon be charged $3 to $4 more a month, but not because of fluctuating natural gas prices.
Those are handled separately, based on prevailing market conditions.
What the Public Utilities Commission of Ohio approved last week was an agreement that allows Columbia Gas to collect $68.2 million over five years for replacing aging infrastructure, such as pipelines, and for other programs and equipment necessary to help modernize the system. Columbia Gas had sought $221.4 million.
Columbia Gas has 30 days to notify customers.
PUCO Chair Jennifer French called the settlement “a reasonable resolution to this case that balances impacts to monthly bills while supporting utility investments in safety and economic development programs.”
The final agreement mirrors a proposed settlement the PUCO staff made with Columbia Gas on Oct. 31. At that time, a NiSource Inc. spokesman, Erica Chronaberry, said a typical resident customer can expect to pay about $3.76 more a month.
Eric Hardgrove, NiSource Inc. state communications director, reiterated that $3.76 monthly figure in a statement he provided to The Blade on Monday night.
“This increase reflects the costs necessary to continue providing safe, affordable, reliable natural gas service,” Mr. Hardgrove said. “Columbia is committed to our customers and the communities we proudly serve. In addition, Columbia offers a wide variety of bill payment assistance, energy efficiency programs, payment plans and PIPP to help those customers who need assistance.”
NiSource Inc. is the parent company of Columbia Gas of Ohio and other utility companies.
As part of the agreement, Columbia Gas will offer more than $70 million for home weatherization through a program known as WarmChoice, and also make $3.5 million available in payment assistance for low-income Ohioans. The latter is to be funded by company shareholders, not ratepayers, and will make available $700,000 annually over those five years.
Columbia serves 1.4 million natural gas customers in 60 of Ohio’s 88 counties.
The Office of Ohio Consumers’ Counsel Bruce Western said immediately after PUCO announced its decision that it “appreciated the efforts by parties over nearly half a year to find a path to a settlement that significantly benefits consumers compared to Columbia’s original rate increase request.”
Robert Kelter, a senior attorney for the Chicago-based Environmental Law & Policy Center, said that group is “very disappointed” by the decision, claiming it “guarantees utility profits at the expense of consumers.”
“It particularly hurts low-income customers who typically use less gas,” he said. “The commission made matters worse by also approving Columbia’s cancellation of all but one low-income energy efficiency programs that help customers lower bills. This decision will cause many customers to face increased difficulties paying their bills.”
David Manor of Toledo-based Advocates for Basic Legal Equality Inc., which provides legal services to people often unable to afford them, said in formal remarks to the commission last fall that the rate increases “would put undue burden on those who have low and fixed incomes, straining Ohioans access to natural gas.”
His comments were among dozens posted online by the PUCO then and as recently as last week.
One of the state’s largest environmental groups, the Ohio Environmental Council, said in comments delivered Jan. 5 that it believes the plan “does not benefit consumers, and raises emissions.”
As part of the deal, Columbia agreed to stop sharing personal contact information with energy marketers for customers who make such a request online.
First Published January 30, 2023, 11:39 p.m.
