COLUMBUS, Ohio — The Ohio Supreme Court has unanimously upheld a Columbia Gas of Ohio rate increase that was approved by state regulators in 2023, leaving in place a plan expected to generate approximately $68 million in additional annual revenue for the utility.
The decision affirms an order issued by the Public Utilities Commission of Ohio (PUCO), finding regulators acted within their authority when approving the settlement agreement.
The legal challenge was filed by the Environmental Law & Policy Center and the Citizens’ Utility Board of Ohio. The groups opposed raising the fixed monthly residential customer charge from $36 to $58 and objected to ending several energy-efficiency programs available to all customers.
Writing for the court, Justice Jennifer Brunner stated that the challengers failed to demonstrate that the PUCO acted unlawfully or abused its discretion when it approved the settlement.
The ruling noted that Columbia Gas will continue providing energy-efficiency programs for low-income customers and will contribute $70 million toward weatherization projects designed to improve energy efficiency in qualifying households.
According to the court, eliminating certain non-low-income demand-side management programs is projected to save customers about $120 million per year. Regulators also determined that the updated rate structure would make bills more predictable by separating the fixed costs of delivering natural gas from the fluctuating cost of the fuel itself.
The case centered on Columbia Gas’ use of a “straight fixed variable” rate design, which the company has used since 2008. The utility argued the structure removes any financial incentive to encourage higher gas consumption while providing more stable monthly bills.
The Ohio Supreme Court ultimately concluded that the expected customer savings and other benefits outweighed concerns raised by opponents over the elimination of some energy-efficiency programs for non-low-income customers.
The decision leaves the PUCO-approved rate increase fully in effect.
