Columbia Gas of Ohio Rates Spike to $0.767 for December

Natural gas bills for millions of Ohioans are set to climb sharply as winter officially sets in. Effective for the December billing cycle, Columbia Gas of Ohio has adjusted its Standard Choice Offer (SCO) rate to $0.7674 per Ccf (100 cubic feet).

This represents a 15.8% increase from last month’s rate of $0.6626 per Ccf. For the average home heating with natural gas, this jump adds immediate pressure to household budgets just as thermostats are being turned up across the state.

Why Are Rates Changing?

The new rate of $0.7674 is not arbitrary; it is the result of a “perfect storm” of two converging costs that are passed directly to consumers:

1. The NYMEX Settlement (~$0.442): The cost of the natural gas commodity itself is determined by the national market. The December 2025 contract on the New York Mercantile Exchange (NYMEX) settled higher, reflecting the “fear premium” traders are pricing in for the upcoming Winter 2025-2026 heating season.
2. The Retail Price Adjustment ($0.325): This is the fixed “adder” that Columbia Gas customers pay on top of the market price. Following an auction earlier this year, this fee nearly doubled from $0.166 last year to $0.325 per Ccf for the current period.

The Math: $0.442 (Gas) + $0.325 (Delivery/Risk Fee) = $0.7674 per Ccf.

Because the Retail Price Adjustment is fixed at such a high level until April 2026, Columbia Gas customers are structurally exposed to any fluctuations in the national gas market. When national prices rise even slightly, the high “adder” amplifies the total rate paid by the consumer.

The “Silent” Cost: Supreme Court Battles Fixed Charges

While the usage rate grabs headlines, a separate battle is being fought over the fixed monthly charges that customers pay regardless of how much gas they use.

On October 29, 2025, the Ohio Supreme Court heard oral arguments in a high-profile case challenging the legality of Columbia Gas’s rate structure.

• The Controversy: In a 2023 settlement approved by the Public Utilities Commission of Ohio (PUCO), Columbia Gas was authorized to increase its fixed monthly charge cap from approximately $36 to $58 by 2027. Currently, the total fixed burden (including riders) for a residential customer sits at approximately $54.71 per month.
• The Argument Against: Consumer advocates, including the Ohio Consumers’ Power Alliance and the Environmental Law & Policy Center, argue that these high fixed charges are not in the “public interest.” They claim that front-loading costs into a fixed fee discourages energy conservation (since using less gas saves the customer very little money) and disproportionately harms low-income and low-volume users.
• The Utility’s Defense: Columbia Gas and the PUCO argue that a guaranteed fixed revenue stream is necessary to fund critical safety upgrades and infrastructure replacement without relying on volatile usage volumes.

While the court has not yet issued a ruling, the outcome of this case could fundamentally reshape how Ohio utilities are allowed to bill their customers in the future.

Who Is Impacted?

This rate change affects all residential and small commercial customers in the Columbia Gas of Ohio service territory who have not already switched to a competitive supplier. This includes over 1.5 million accounts focused in the following major metropolitan areas.

• Central Ohio: Columbus, Dublin, Westerville, Grove City, Springfield, and surrounding Franklin/Union/Delaware counties.
• Northwest Ohio: Maumee, Perrysburg, and Bowling Green.
• Northeast Ohio (Select Areas): Southern and western suburbs of Cleveland, including Parma, Strongsville, Elyria, and Lorain.
• Other Key Hubs: Mansfield, Marion, Chillicothe, and Zanesville.

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What This Means for Your Bill

Strategy for homeowners is now critical. With the SCO rate pushing toward $0.80/Ccf, the “Price to Compare” has risen significantly.

• Shop for Rates: Many competitive suppliers are offering fixed-rate plans in the $0.65 – $0.70 range. Residents in the impacted cities should check their eligibility to switch, but be careful to watch for monthly fees or early termination penalties.
• PIPP Plus: For households struggling with the increase, the PIPP Plus program remains the primary safety net, capping gas bills at 5% of monthly income for eligible low-income residents regardless of the current rates.