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Columbia Gas is seeking approval from the PSC to adjust the system charge and distribution usage charges, which are commonly referred to as base rates.  

Unlike most businesses, which can change the price of their products/services without outside approval, regulated energy providers—like Columbia Gas—must submit a detailed request to change their base rates. The request includes evidence to support the increase and demonstrate how it benefits customers. 

The process—referred to as a rate case—must be decided by the Maryland Public Service Commission (PSC). 

Customers have a voice in the review process in multiple ways, including through written comments or by attending public input hearings. Residential customers are represented throughout the process by the Maryland Office of People's Counsel. 

This rate case review is public. All of the documents that are part of this rate case will be posted on the PSC’s website as soon as a case number is assigned. 

Base rates generate the revenue needed to recover the costs to repair, upgrade, and operate Columbia Gas of Maryland’s natural gas delivery system. This system includes approximately 669 miles of pipelines, regulator stations, meters, and other facilities. This charge is separate from natural gas costs, which generally make up about a third of the total bill. As a regulated utility, Columbia Gas purchases gas on the wholesale market and, under Maryland law, passes those natural gas costs on to the customer without mark-up or profit. 

Base rates are made up of a system charge and a usage-based distribution charge (per therm rate). 

Infrastructure Upgrades. We are enhancing the safety of our system through our pipeline replacement program. We will continue to invest millions of dollars each year to replace aging distribution pipelines. We remain committed to providing safe, reliable, and efficient natural gas distribution service, and we plan to dedicate $10.9 million in 2024 just to replace aging infrastructure. 

System Reliability. Upgrades to the system with plastic and cathodically protected steel pipe not only maintain safety but also provide an upgraded system design ensuring more reliable service during extreme cold temperatures. The new system also provides more flexibility in adding new, high efficiency equipment and allows for the installation of smaller, less expensive interior piping system for customers. 

Pipeline Maintenance Enhancements. System maintenance practices will further improve the safe and reliable delivery of natural gas, such as enhanced training and system improvements to reduce the amount of damage done to our distribution facilities by external parties, the number one risk to the safety of our system. 

Job Creation. Our pipeline replacement program has created jobs, both full-time employees (engineers, engineering technicians, land agents and construction inspectors) as well as contractors who perform the actual pipe replacement (including laborers, equipment operators, crew leaders and support staff), and associated support services such as paving, traffic control, trucking, sand and gravel and a myriad of other material purchases and support activities. 

We take our commitment to our local communities seriously, and we are proud of the more than 100 full-time employees and contractors across the state of Maryland who comprise the Columbia Gas team. 

Increased demand for natural gas, both domestically and globally, and other factors that affect natural gas market pricing like weather, storage capacity, and financial markets all contribute to the cost of natural gas.  

Nearly all of the natural gas we procure and deliver to our customers is domestically produced, or within North America. Meanwhile, we continue to closely monitor the evolving situations occurring overseas for any potential effects locally. 

Natural gas utilities like Columbia Gas do not set market pricing for gas supplies, nor do utilities profit from the sale of natural gas to their customers. The Gas Commodity Charge, which is separate from the base rate charges, recovers the cost of the natural gas used by customers and are passed directly through to customers dollar for dollar with no markup. Columbia Gas does not profit on that portion of the bill, by Maryland law.  

All of Columbia Gas of Maryland’s investments in pipes, meters and all of its expenses that support safe and reliable gas service — including responding to gas-related emergencies — are recovered through the base rate charges (customer charge and distribution usage charges).   

The decision to file for this rate adjustment review was not made lightly. It was made only after a thorough and exhaustive assessment of the financial needs required to meet our responsibilities to continue the safe and reliable operation of our system across our entire service area, to continue our critical infrastructure replacement program, and to identify and address additional system risks. 

Ultimately, the PSC will determine what Columbia Gas’s rates will be. The review process will take an additional nine months after the filing of this request, and new rates approved by the PSC would not go into effect until April 2025. 

The PSC determines what Columbia Gas’s rates will be. The review process will take an additional seven months after the filing of this request, and new rates approved by the PSC would not go into effect until April 2025. 

We have a responsibility to continue the safe and reliable operation of our system, and that includes assessing the financial need to continue our critical infrastructure replacement program and identify additional system risks while maintaining the safe operations of our system across our entire service area in Maryland. 

Columbia Gas is offering residential and commercial customers who indicate either an impact or hardship our most flexible payment plans to spread the balance due across multiple months. More information can be found on our website here. 

At all times, Columbia Gas is committed to providing our low-income customers with the tools, resources, and programs to stay safe and warm in their homes. These programs help customers mitigate the impact of a rate adjustment or financial changes due to economic conditions. 

Budget Payment Plan: Available to all Columbia Gas customers, the Budget Payment Plan allows customers to spread yearly bills over twelve months instead of paying your account balance each month, helping to eliminate high winter bills. The budget season starts in May but customers may sign up at any time.  

Maryland Energy Assistance Program (MEAP): Columbia Gas serves as a link to federal energy assistance funds which provide help with residential heating costs. These energy grants do not have to be repaid by the customer. Enrollment guidelines, which are revised each new heating season, are based on household size and income. MEAP applications are accepted year-round.  

Utility Service Protection Program (USPP): USPP protects families with low incomes from utility cut-offs and allows MEAP eligible households to enter into a monthly payment program to help stabilize energy bills. MEAP grants are deducted from the estimated annual utility bills, lowering monthly budget payments. For households with back bills, special agreements with Columbia Gas are available to arrange for payment on the balance.  

Heat Share: The Columbia Gas of Maryland Fuel Fund provides energy grants to customers with low incomes for use in offsetting arrears or restoring service to terminated accounts. Heat Share funds are only available to customers who have exhausted all other available energy assistance programs.  

Low Income Usage Reduction Program (LIURP): This weatherization program helps seal areas where heat escapes. It assists income-eligible customers who have high gas usage reduce how much energy they use.  

We will continue to monitor current events and identify opportunities to support our customers and communities. 

Columbia Gas continues to focus on working efficiently. We have taken the following steps to save money and will continue to look for additional ways to make the most cost-effective decisions for our customers: 

Because our previous STRIDE plan expired at the end of 2023, Columbia Gas has not included an IRIS surcharge on customers’ bills in 2024. Although the company does not currently have an approved STRIDE program, we continue to make certain ongoing infrastructure investments which are necessary to ensure the safety, reliability and environmental performance of our distribution system. 

Columbia Gas has filed its proposed 2025-2029 STRIDE plan with the PSC to replace aging infrastructure based on potential system risks rather than relying solely on the type of material and age of the infrastructure.  

The previous STRIDE surcharge covered only investments in facilities, not operation and maintenance costs. It is therefore also necessary to adjust base rates to allow Columbia Gas to recover its increased O&M costs.  

The company’s previous STRIDE plans allowed Columbia Gas of Maryland to make significant progress in replacing aging pipelines in its distribution system to the benefit of our customers. Columbia Gas of Maryland has replaced more than 117 miles of aging bare steel and cast-iron pipe, largely in part due to the STRIDE program that has stretched over the past decade. All known cast iron pipe in our Maryland system was eliminated as of the end of 2020.  

It is important to note that STRIDE surcharges are capped, and specifically the residential STRIDE surcharge is capped at $2 per month. 

Because of our past investments through STRIDE, our customers have seen increased reliability, affordability and reduced methane emissions and believe STRIDE should continue.  

The STRIDE program has enabled Columbia Gas to be a founding member of EPA’s Methane Challenge program, in which partners transparently report systematic and comprehensive actions to reduce methane emission in the U.S. Reducing methane emissions reduces operational risk, increases efficiency, and demonstrates company concern for the environment, with benefits spanning from climate change to air quality improvements to conservation of a non-renewable resource. Although the Methane Challenge program will sunset at the end of 2024, Columbia Gas is proud of its contributions to methane emission reductions under the program. 

Our investments will help Maryland achieve the requirements of the Climate Solutions Now Act of 2022, which mandates a 60 percent greenhouse gas reduction by 2031 (from 2006 levels) and net zero emissions by 2045. 

We believe that natural gas and the natural gas infrastructure will play a key role in an equitable energy future for all customers. 

Affordable and reliable natural gas is an essential resource that enables consumers to economically heat their homes on the coldest days of the year, heat water, cook food and dry clothes, and it allows commercial and industrial enterprises to conduct their operations competitively and economically.  

According to the American Gas Association, households that use natural gas for heating, cooking, and clothes drying save an average of $1,068 per year compared to those using electricity for those applications.  

Columbia Gas is committed to being a partner in addressing climate change and reducing greenhouse gas emissions through smart innovation, new and modernized infrastructure, and advanced technologies that maintain reliable, resilient and affordable energy service choices for our customers.  

Columbia also helps income-eligible customers conserve natural gas and reduce their greenhouse gas emissions through weatherization services and energy efficiency initiatives. 

Columbia Gas is committed to sustained economic growth, social responsibility, and environmental stewardship in Maryland. Our investments will continue to improve safety, reliability, and environmental performance. The infrastructure that today delivers traditional natural gas is already beginning to transport other types of fuels, such as renewable natural gas, hydrogen, or other low-carbon fuels. 

Renewable natural gas is uniquely positioned to provide a meaningful contribution to decarbonization today and in the future due to its dual benefits. Renewable natural gas not only can serve as a substitute for conventional fossil fuels but can also offset emissions from other sources, such as landfills and livestock operations. Methane that would normally be released into the atmosphere at these locations is instead captured leading to an even greater carbon reduction.  

Low-cost natural gas supplies have enabled electricity generators to transition to a cleaner energy mix faster than would have otherwise been possible. And low-cost natural gas supports economic competitiveness, one of the key pillars of a sustainable business. Looking to the future, our natural gas infrastructure can be used to increase the delivery of even lower-carbon fuels such as RNG to help Maryland achieve the requirements of the Climate Solutions Now Act of 2022. 

Customers can reach out to the PSC. This rate case review process is public. Anyone interested in the case can participate. We have an extensive customer outreach program designed to make sure everyone is aware of what we are filing and why.  

All of the documents that are part of this rate case will be posted on the PSC’s website as soon as a case number is assigned.