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Community Natural Gas Rates

Community Natural Gas Co. provides service in 10 southern Indiana counties.

To compare average residential billing amounts for regulated natural gas utilities, see the IURC's monthly residential surveys.

Key components in natural gas bills include gas costs and base rates.

Gas Costs

Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates periodically to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.

  • Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
  • Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
  • Each GCA filing requires OUCC review and IURC approval.

Community Natural Gas Co. files gas cost adjustment requests every three months. Its most recent GCA (Cause No. 37488 GCA-152) received approval in April 2022.

Base Rates

Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.

The OUCC and the utility have reached an agreement in principle. A formal settlement agreement is due on June 30, 2022. A settlement hearing is scheduled for July 21, 2022.

In its initial filings on Mar. 4, 2022, Community Natural Gas Co. requested a 25.9 percent rate increase in Cause No. 45690. All publicly filed documents are available through the IURC's electronic document system. The utility's case-in-chief includes:

In the following testimony filed on May 25, 2022, the OUCC recommends reducing the requested rate increase to 10.8 percent:

Our infographic outlines the steps in a rate case.  For more information, please see the OUCC's May 2 news release.

This page will be updated based on case developments.

The utility's current base rates were approved in a December 2019 IURC order. In this partially settled case, the Commission approved an annual revenue increase of about $616,000. The utility initially requested a $976,000 increase, compared to the OUCC's recommendation of $231,000.

Infrastructure Improvement Plan

In a separate case, Community Natural Gas Company received approval of a long-term infrastructure improvement plan in 2016 (Cause No. 44710). The OUCC filed testimony recommending approval.

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