A state agency has kept some natural gas customers from paying a little more each month.
The Kentucky Public Service Commission has approved a settlement granting Atmos Energy less than one-sixth of a requested increase in its natural gas distribution base rates, leaving average monthly bills essentially unchanged.
Under the terms of the settlement, the monthly service charge for Atmos residential customers will decrease from the current $18.65 to $17.50. That reduction includes elimination of a $2.65 surcharge used for an accelerated program to replace aging pipes in the Atmos distribution system. That surcharge had been added to the $16 base monthly service charge.
The delivery charge for gas will rise from $1.32 to $1.53 per 1,000 cubic feet.
The rates agreed to in the settlement do not include the cost of the gas itself, which accounts for about half the total bill. The gas cost is adjusted every three months to reflect the wholsesale amount Atmos pays for gas.
Atmos Energy asked for the rate increase in November, hoping for an increase of about 2 percent on customer’s bills. The settlement was submitted to the PSC by Atmos and the Kentucky Attorney General’s office in June.
Atmos Energy serves nearly 175,000 customers in central and western Kentucky.