Retail Unbundling - Kentucky

Status: The state has a one pilot unbundling program for residential customers.

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. The 3-year 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 will continue as the supplier of last resort and remain in the merchant business, both selling and transporting natural gas to consumers. The company has about 126,000 residential and 14,000 commercial customers in Kentucky. Columbia must file an annual report each year that provides data on customer participation and related volumes, customer education programs, marketer participation, and stranded costs. Marketer information must be kept current, not just provided annually. Larger volume customers throughout the state have had access to unbundled service since the 1980s. Four marketers (Interstate Gas Supply, MXEnergy, Stand Energy Corp., and Energy.com.) have been approved to participate in Columbia's choice program but only the first two are currently marketing in Kentucky.

EIA State Data: In 2000, Kentucky had 744,821 residential and 81,649 commercial customers. They consumed 65 and 39 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 $7.41 and $6.68 per thousand cubic feet, respectively. The average city gate price in Kentucky was $4.93 per thousand cubic feet.

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File last modified: 06/19/2002