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No. Columbia Gas rates change for all customers when PUCO approves rate cases. There's no grandfathering mechanism. However, if you switch to a competitive supplier, you can lock in current rates for 12-36 months, effectively "grandfathering" your price for that period regardless of Columbia Gas's future rate increases.
Columbia Gas Rate Changes: Understanding Your Natural Gas Bill Increases
If your business uses Columbia Gas for heating, water heating, or operations and your bills have been climbing, you're not alone. Multiple rate hikes over the past two years are dramatically increasing natural gas costs across Ohio. Understanding what's driving these increases and what you can do about them is critical for controlling your business expenses.
Why Your Columbia Gas Bill Is Suddenly Soaring (And What It Means for Your Business)
Columbia Gas serves over 3.4 million customers across Ohio, Kentucky, and other states, making it the largest natural gas provider in its service territories. Recent rate increases have been substantial and multifaceted, affecting both residential and commercial customers.
The Recent Rate Hike Timeline
- 2022-2023: Columbia Gas requested and received rate increases totaling 15-25% in response to higher commodity costs and infrastructure investments.
- 2023-2024: Additional infrastructure cost recovery riders increased rates another 8-12%.
- 2024-2025: Further capital cost recovery and safety modernization charges added 5-8% more.
- Total Impact: Businesses paying Columbia Gas bills 30-40% higher than they were two years ago.
These aren't isolated spikes—they represent a structural shift in how Columbia Gas calculates rates and recovers costs. Understanding the components of your bill is essential for identifying savings opportunities.
Decoding Your New Bill: A Line-by-Line Guide to Columbia Gas Rate Hikes
Your Columbia Gas bill contains multiple components, each with different rate structures. The recent hikes affected different parts of your bill differently.
| Bill Component | Typical Percentage | 2024-2025 Impact | What This Means |
|---|---|---|---|
| Commodity (Natural Gas Cost) | 40-50% | ±Variable with market | Wholesale natural gas prices; fluctuates monthly based on market conditions |
| Distribution (Delivery) | 20-30% | +15-20% from rate cases | Columbia Gas's charge for maintaining pipes/infrastructure; highest impact from recent hikes |
| Transmission | 10-15% | +5-8% from infrastructure investment | Cost of transporting gas through larger pipelines to Columbia Gas's system |
| Safety Modernization Rider | 5-10% | +3-5% new charges | New charge for infrastructure safety updates required by PUCO |
| Taxes & Surcharges | 5-10% | Proportional to bill increase | Calculated as percentage of total bill; increases as other charges rise |
The critical distinction: while you can't control commodity prices (wholesale natural gas), the delivery and infrastructure charges are where Columbia Gas has implemented significant rate hikes.
Example: Small Commercial Customer
A small business using 5,000 therms annually:
- 2023 Annual Cost: ~$4,500 (delivery + commodity + other)
- 2025 Annual Cost: ~$5,850 (same usage)
- Increase: $1,350/year (+30%)
This increase is driven by distribution rate hikes (+$500), infrastructure riders (+$400), and commodity cost recovery (+$450).
Example: Mid-Size Commercial Customer
A restaurant or small manufacturing facility using 15,000 therms annually:
- 2023 Annual Cost: ~$14,200
- 2025 Annual Cost: ~$18,500 (same usage)
- Increase: $4,300/year (+30%)
Larger usage means larger absolute dollar impact from percentage-based rate hikes.
To decode your specific bill, request a detailed bill breakdown from Columbia Gas. Many businesses don't realize they can switch suppliers to avoid some of these rate hikes entirely.
3 Actionable Strategies to Fight Back Against Rising Natural Gas Costs
You have more options than you might think to reduce the impact of Columbia Gas rate increases on your business.
1. Switch to a Competitive Supplier
If your business is in a deregulated natural gas area in Ohio, you can choose from alternative suppliers. This is your biggest opportunity for savings. A competitive supplier doesn't charge the full distribution and infrastructure recovery costs that Columbia Gas does.
Potential Savings: 15-30% annual savings compared to Columbia Gas standard rates. A business paying $5,850/year on Columbia Gas might pay $4,100-4,950/year with a competitive supplier.
Timeline: Switch complete within 30-45 days. Locked-in pricing protects against future rate hikes.
2. Implement Demand-Side Efficiency
Reducing natural gas consumption is the fastest way to lower your bills. Common opportunities include:
- HVAC system optimization and maintenance
- Building envelope improvements (insulation, weather stripping)
- High-efficiency equipment upgrades
- Process optimization for commercial operations
Potential Savings: 10-25% reduction in consumption = 10-25% bill reduction. A 15% efficiency improvement saves $877/year for small businesses, $2,145/year for mid-size.
3. Lock In Fixed-Rate Contracts
If you can't switch suppliers yet, ask Columbia Gas about fixed-rate contract options. Some commercial customers can negotiate limited-term fixed rates. Additionally, if you do switch suppliers, choose a fixed-rate plan rather than variable.
Benefit: Protects against further rate increases while you implement efficiency measures. Even a 1-2 year freeze on rate increases provides time to budget for efficiency investments.
Timeline: Negotiate now. Fixed-rate offers expire, so don't delay.
4. Analyze Your Usage Patterns
Review 12-24 months of bills to identify seasonal patterns and anomalies. High winter bills are normal, but unexpected spikes might indicate equipment problems. Fixing broken equipment quickly prevents months of wasted gas and higher bills.
Potential Savings: 3-10% from identifying and fixing inefficiencies. A 5% reduction saves $293/year for small businesses, $927/year for mid-size.
5. Explore Alternative Energy Sources
For certain applications, consider moving away from natural gas entirely. Options include:
- Electric heat pumps (for heating and cooling)
- Solar hot water systems (for water heating)
- Biomass boilers (for large users with waste wood source)
- Electric induction cooking (for commercial kitchens)
Potential Savings: 30-50% of heating costs with high-efficiency electric alternatives, though upfront investment is significant. Federal tax credits (up to 30%) help offset costs.
6. Review Rate Structures with PUCO
Columbia Gas operates under PUCO regulations and rate cases. If you believe rate increases are excessive or unfair, you have the right to file complaints with PUCO. Additionally, track when rate cases are scheduled so you can provide input during public comment periods.
Benefit: While individual complaints rarely change rates, collective action can influence regulatory decisions. More importantly, staying informed helps you plan for future increases.
The most effective strategy combines multiple approaches: switch suppliers for immediate savings, implement efficiency improvements for sustained reductions, and maintain vigilance on future rate changes.
Beyond Rate Hikes: How to Lock In Predictable Energy Costs & Future-Proof Your Business
While individual actions matter, the most important step is moving away from vulnerable rate structures into ones you can control.
The Strategic Priority: Supplier Switching
If Columbia Gas rate hikes are impacting your bottom line, switching suppliers should be your first priority. Here's why:
- Savings are immediate: First bill shows reduced costs.
- Price certainty: Fixed-rate contracts protect against future hikes.
- No operational disruption: The same reliability, different supplier.
- Flexibility: Many suppliers offer short-term contracts (12 months) with easy exit.
- Competitive incentives: Suppliers actively bid for market share with aggressive pricing.
A business currently paying Columbia Gas standard rates and switching to a competitive supplier locks in rates for 12-36 months, eliminating exposure to the next round of Columbia Gas rate hikes.
After switching to a competitive supplier, implement the efficiency and demand-reduction strategies mentioned above. The combination of lower baseline rates (from supplier switching) plus reduced consumption (from efficiency) creates compounding savings.
Long-Term Planning for Deregulation
Ohio's natural gas market has been deregulated since 1999, giving businesses the choice to switch suppliers. However, political discussions about reregulation surface periodically. To future-proof your business:
- Take advantage of choice now while competitive options exist.
- Build efficiency and alternative energy sources that reduce dependency on any single fuel.
- Establish long-term relationships with energy suppliers you trust.
- Document savings from switching and efficiency improvements to justify continued investment.
Frequently Asked Questions About Columbia Gas Rate Changes
No. Your supplier chooses who provides gas and handles billing; Columbia Gas still maintains the infrastructure and delivery. Reliability and safety are identical. Thousands of Ohio businesses have successfully switched suppliers. The only "risk" is a potential rate increase when a short-term fixed contract expires—but you can renegotiate before expiration.
Columbia Gas publishes Price to Compare (PTC) rates that competitive suppliers must beat to offer value. Current PTC varies by service area but typically ranges from $4.50-6.00/therm delivered. Competitive suppliers often quote $4.00-5.50/therm for fixed-rate contracts. Get a quote from your current PTC to understand your baseline.
Likely. Columbia Gas has ongoing infrastructure modernization programs funded through rate increases. Rate cases are typically filed every 3-5 years, with additional interim riders between cases. Expect 2-5% annual increases as the baseline going forward. This reinforces the value of switching to fixed-rate contracts now while pricing is competitive.
The formal switching process takes 30-45 days. You'll choose a supplier (usually through a procurement specialist or broker), sign a contract, and the supplier submits enrollment to Columbia Gas. Your first bill from the new supplier typically arrives 30-45 days after enrollment. No service interruption occurs during the switch.
Yes. All natural gas costs, including rate increases, are business expenses and deductible as operational costs. Switching to a lower-cost supplier increases your deductible expenses in the same amount, providing indirect tax benefits alongside direct bill savings. Work with your accountant to optimize deductions.
Take Action: Stop Paying Columbia Gas's Rate Hikes
Columbia Gas rate hikes are something you must accept if you're stuck on their standard tariffed rates. But you don't have to be stuck. Switching to a competitive supplier locks in rates and protects you from future rate hikes.
Get quotes from vetted natural gas suppliers in your area. See what rates are available for your business. Most businesses can save 15-30% immediately.
No obligation. Compare rates from multiple suppliers and make an informed decision.