When the Ground Shifts: The Power of Information in Energy Procurement
In today’s volatile energy market, transparency and control are everything. While many have been focused on the recent capacity market changes in PJM, another impactful event involving the Columbia Gas Transmission (TCO) pipeline is a textbook example of how quickly the landscape can shift—and why staying informed is essential to an effective energy strategy. We’ve received a number of questions recently from gas users who are seeing increases on their gas bills, so we wanted to explore it a bit further.
Here’s what’s happening, what it means for your contracts, and how we’re helping clients navigate it.
What Happened?
Columbia Gas Transmission (TCO), a major pipeline operator serving DC, DE, KY, MD, NJ, OH, PA, VA, and WV, filed a rate case (FERC Docket No. RP24-1103-000) with the Federal Energy Regulatory Commission (FERC) last fall. The proposed changes represent a 131% increase in the transportation and storage fees charged to utilities and suppliers. Because these are midstream costs, they eventually get passed down to end-users—whether you’re on a utility default rate or a third-party supply agreement. There is no escaping it. In response, several suppliers have filed suit against TCO, arguing that the increases are excessive.
FERC allowed the proposed rates to take effect on April 1, 2025, subject to refund pending the outcome of the ongoing regulatory proceedings.
What’s the Impact?
Here’s a breakdown based on a typical affected customer:
- Annual gas usage: 5,461 Dth
- Original contracted rate: $5.20/Dth
- New preliminary rate: $6.23/Dth
- Estimated increase: ~$468/month, or $5,624 annually
What Can You Control?
These new charges are already appearing on some invoices. You can’t prevent a pipeline rate hike—but you can:
- Stay informed about market changes
- Understand how these changes can affect your bill, bottom line, and budget
- Review procurement timing and contract structure
- Explore mitigation strategies (e.g., reduced usage, blend-and-extend)
The Bottom Line
This isn’t discretionary—it’s a systemic regulatory cost increase. But that doesn’t mean you’re powerless. With clear insight, sound planning, and the right partner, you can adapt confidently and stay in control—even when the ground shifts.