Press Release

PUC Approves Substantially Reduced Rate Changes for Columbia Gas of Pennsylvania

Published on 12/4/2025

Filed under: Gas

Commission scales back requested increases, adjusts the fixed monthly charge and Weather Normalization Adjustment, and strengthens consumer safeguards

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today 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 today’s 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 today’s public 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.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2025-3053499

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov