Key Takeaways
- Rate Hike: Columbia Gas of Kentucky’s gas supply cost has risen to $7.8840 per Mcf, impacting approximately 135,000 customers across the state.
- The Cause: The increase is driven by a “perfect storm” of higher regulatory delivery fees and market volatility caused by the extreme cold of Winter Storm Fern.
- Bill Impact: A typical household using 15 Mcf of gas can expect their monthly bill to increase by roughly $33.71, a 17% jump from February 2025.
- Action Plan: Ratepayers can offset costs by applying for LIHEAP Crisis funds before March 31 or shopping for competitive fixed rates via the Customer CHOICE® program.
If you opened your gas bill this week and felt a moment of shock, you aren’t alone. Residents across Central and Eastern Kentucky are grappling with a significant spike in heating costs this month. Columbia Gas of Kentucky has adjusted its gas supply rate to $7.8840 per Mcf (thousand cubic feet), a sharp increase from previous levels of approximately $6.50.
This rate hike arrives just as households are processing usage from January’s brutal temperatures, creating a “double whammy” for household budgets. Here is a breakdown of why rates are changing, which cities are affected, and what you can do to lower your bill immediately.
Why Are Rates Rising? The “Perfect Storm”
The increase in your total bill is the result of two separate factors colliding at once:
- Market Volatility (Winter Storm Fern): The cost of the natural gas commodity itself, the physical fuel you burn, has skyrocketed. In late January 2026, Winter Storm Fern swept across the U.S., freezing wells and triggering historic demand for heating. This forced utilities to purchase gas at elevated spot market prices. Under Kentucky law, Columbia Gas passes this cost directly to you with zero profit added.
- Base Rate Increase (Case No. 2024-00092): Apart from the gas cost, the fees you pay for delivery (infrastructure maintenance) have also gone up. Following a recent settlement with the Kentucky Public Service Commission (PSC), the fixed monthly “Customer Charge” for residential accounts rose to $21.25, and the volumetric delivery rate increased to help fund pipeline safety upgrades.
Doing the Math: The Impact on Your Wallet
How does this translate to dollars and cents? We modeled a typical winter bill for a Kentucky home using 15 Mcf of gas.
| Cost Component | Feb 2025 (Est.) | Feb 2026 (Current) | Difference |
| Gas Supply Cost | $98.70 | $118.26 | +$19.56 |
| Delivery/Fixed Costs | $98.54 | $112.69 | +$14.15 |
| Total Bill | $197.24 | $230.95 | +$33.71 |
Note: Estimates exclude local franchise fees and taxes.
For the average family, this represents a roughly 17% increase in total costs compared to last winter.
Which Communities Are Impacted?
This rate change applies uniformly across Columbia Gas of Kentucky’s entire service territory, which spans 30 counties. Major population centers feeling the pinch include:
- Lexington (Fayette County)
- Frankfort (Franklin County)
- Ashland (Boyd County)
- Winchester (Clark County)
- Georgetown (Scott County)
Full List of Counties Served: Bath, Bourbon, Boyd, Bracken, Carter, Clark, Clay, Estill, Fayette, Floyd, Franklin, Greenup, Harrison, Jessamine, Johnson, Knott, Lawrence, Lee, Letcher, Lewis, Madison, Magoffin, Martin, Mason, Menifee, Montgomery, Morgan, Nicholas, Owsley, Pendleton, Perry, Pike, Robertson, Scott, and Woodford.
3 Ways to Lower Your Bill Today
While you cannot control the market rate, you can take specific steps to mitigate the financial impact.
1. Shop for a Better Rate (Customer CHOICE®)
Kentucky is unique in offering the Customer CHOICE® Program, allowing you to buy your gas from a third-party supplier while Columbia Gas still delivers it.
- The Opportunity: Suppliers like NOVEC Energy Solutions are currently offering fixed rates as low as $7.50 per Mcf.
- The Math: Switching from the utility rate of $7.8840 to a fixed $7.50 could save you about $5.75 per month on a typical winter bill.
- Caution: Check the terms carefully. If market rates drop in the spring (as projected), you do not want to be locked into a high fixed rate.
- Check Offers Here: Columbia Choice
2. Apply for Emergency Aid (LIHEAP)
If you are facing a disconnection notice or cannot pay your bill, financial aid is available right now.
- Program: LIHEAP Crisis Component
- Deadline: Open until March 31, 2026.
- Eligibility: Households at or below 150% of the federal poverty guidelines (approx. $4,019/month for a family of 4).
- How to Apply: Contact your local Community Action Agency.
3. Upgrade Your Furnace for Free
For long-term savings, stop wasting heat. Columbia Gas offers a Furnace Replacement Program that provides high-efficiency furnaces at no cost to income-eligible homeowners with unsafe or inefficient units.
- Contact: Call the Community Action Council at 1-800-244-2275 to see if you qualify.
The Outlook: Relief on the Horizon?
There is good news ahead. Preliminary filings for March 2026 suggest that the Gas Supply Cost may drop to around $6.98 per Mcf as winter demand fades. Until then, keep your thermostat lower when possible and utilize the budget billing tools available at ColumbiaGasKy.com.
About the Author
David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.