Overview: In January 2000, the Kentucky
Public Service Commission (PSC) approved a pilot customer choice program
for residential and small-volume commercial customers of Columbia Gas of
Kentucky, Inc. (Columbia). The program, "Columbia Customer Choice," began on September 2000
and is available to all Columbia customers who consume less than 25
million cubic feet of natural gas per year. Columbia continues as the
supplier of last resort and remains in the merchant business, both selling
and transporting natural gas to consumers. In June 2003, Columbia stated
that choice participants were not saving money and asked that the pilot be
discontinued 7 months before its scheduled termination date of October 31,
2004. Interstate Gas Supply, Inc. (IGS), which supplies gas to most of
Columbia's choice participants, disputed the claim, as did many other
parties. Subsequently, the PSC determined that Columbia had used an
inaccurate accounting procedure to evaluate the program. Instead, the PSC
found that program participants, in the aggregate, have saved on their gas
bills and ordered Columbia to extend the pilot through March 31, 2005. In
April 2005 the PSC approved Columbia’s request to extend the program for
another 4 years, from April 1, 2005, through March 31, 2009. As of December 31, 2006, about 25,800 of the company’s approximately 126,400 residential customers were
participating in the pilot, down substantially from the 45,600
participating in June 2002.
On January 13, 2002, the PSC approved
an agreement wherein marketers participating in Columbia’s choice program
will “take assignment of minimum levels of the utility’s storage and
transportation capacity and undergo a prospective capacity audit.” If a
marketer does not meet its capacity requirements, the utility may assign
capacity to meet the shortfall. As of December 2006, two marketers were
participating in the pilot program, with both offering fixed-price terms.
Larger volume customers throughout the State have had access to unbundled
service since the 1980s.
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| EIA State Data: In 2005, Kentucky had 770,080 residential and 85,243 commercial customers. They consumed 56 and 37 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from local distribution companies by residential and commercial customers were $13.09 and $12.27 per thousand cubic feet, respectively. |
Eligibility and Participation by Customer Class, December 2006
|
Customer Type |
2005 Customer Total |
Eligible 2006 |
Participating
2006 |
|
Total |
Percent
of 2005 Customer Total |
Total |
Percent
of Eligible |
Percent
of 2005 Customer Total |
|
Residential |
770,080 |
126,412 |
16.4 |
25,812 |
20.4 |
3.4 |
|
Commercial |
85,243 |
14,842 |
17.4 |
3,489 |
23.5 |
4.1 |
|
Total |
855,323 |
141,254 |
16.5 |
29,301 |
20.7 |
3.4 |
|
Sources:
2005 Customer Total: Energy Information Administration,
Natural Gas Annual 2005 (November 2006).
Eligibility Rate: Based on customer totals for
Columbia Gas of Kentucky reported on Form EIA-176, "Annual Report of
Natural and Supplemental Gas Supply and Disposition," which is the
primary data source for EIA's Natural Gas Annual.
Participation: Columbia Gas of Kentucky.
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