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Mild winter leads to Chattanooga Gas rate cut

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Illustration by Laura McNutt/Times Free Press. Illustration by Laura McNutt/Times Free Press.

CHATTANOOGA, TN. (Times Free Press) -- Chattanooga Gas Co. is cutting its rates again today after a mild winter and swollen supplies of natural gas supplies continue to reduce the price of gas.

The typical Chattanooga homeowner who heats with natural gas should save about $53 in the next year under the new purchased rate adjustment approved by the Tennessee Regulatory Authority. Effective today, the commodity fuel portion of a typical Chattanooga Gas bill will drop by 14.2 percent to the lowest level since 2002.

"We've had one of the mildest winters in 80 years, and the new gas supplies opened up by new methods of hydraulic fracking have dramatically changed the gas market from where it was a few years ago," said Steve Lindsey, the president of Southern operations for Atlanta Gas Light, Chattanooga Gas and Florida City Gas.

Chattanooga Gas Co., which delivers gas to more than 63,000 customers in Hamilton and Bradley counties, makes purchased gas adjustments periodically to reflect the price of the fuel, which accounts for 75 to 80 percent of the typical gas bill. Chattanooga Gas Co.'s rates to distribute and deliver the gas will not change.

Read more on the story from our news partners at the Chattanooga Times Free Press.

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