Lexington, KY - Columbia Gas of Kentucky has a greenlight to cut its rate for natural gas 34 percent.
The Kentucky Public Service Commission (PSC) okayed the price cut from $5.6509 per Mcf (1,000 cubic feet) to $3.7230. The reduction takes effect May 30.
Columbia Gas of Kentucky typically adjusts its prices quarterly to reflect current market conditions. Natural gas distribution companies do not earn a profit on their gas commodity costs and Columbia Gas of Kentucky passes the cost along to customers without markup.
A gas customer’s monthly bill is comprised of two primary components: the gas supply cost and delivery costs. The delivery charges cover the cost of delivering the gas to the customer’s home or business through the company’s pipeline infrastructure, as well as line inspection, repair, 24-hour emergency service, etc. The gas supply cost includes the commodity cost, interstate pipeline charges and storage costs. The gas supply cost charges typically account for about half of a customer’s monthly bill.