PSC approves Columbia Gas Rider BBS rate-cap increase and reconciliation mechanism

The Public Service Commission voted unanimously on Sept. 24, 2025, to approve Columbia Gas of Maryland Inc.'s proposed changes to its banking and balancing service rider (Rider BBS): an increase to the rider's maximum rate to $0.02283 per therm and tariff revisions to make the rider fully reconcilable.

Cameron Walton, presenting on behalf of staff, told commissioners that Columbia filed the updates on Aug. 22, 2025, and requested approval of two changes: raising the Rider BBS cap to $0.02283 per therm and adding a reconciliation mechanism. Walton said the proposed cap reflects higher pipeline transportation and storage costs following Federal Energy Regulatory Commission-approved rate increases and that Columbia's existing cap of $0.00956 per therm, established more than 20 years ago, no longer accounts for current costs.

Walton told the commission that Baltimore Gas & Electric and Washington Gas Light already calculate balancing rates based on actual costs and that aligning Columbia's cap with actual cost follows cost-causation principles and helps protect residential customers from subsidizing balancing costs driven by larger transportation customers. Staff recommended approval of the proposed cap and the reconcilable tariff changes.

Rebecca Dan Hyres, who identified herself as manager of rates regulatory for Columbia, was available for questions; none were asked. The commission's motion to approve the Rider BBS maximum rate of $0.02283 per therm and the tariff changes — with an effective date noted in the motion as Sept. 21, 2025 — passed on a roll-call vote. Commissioners McLean, Linton, Suchman and Barbet each recorded “aye.”

The commission record includes staff's statement that the proposed changes are intended to prevent under-recovery of balancing costs that have risen due to updated pipeline and storage costs.