Pipeline Charge Increases Drive Natural Gas Costs Higher for AUB Customers

Natural gas customers of Athens Utilities Board (AUB) will see higher bills beginning in December, due to significant rate increases from AUB’s natural gas pipeline supplier.

East Tennessee Natural Gas (ETNG), a pipeline company owned by Enbridge, Inc., recently announced a rate increase of nearly 120%. These changes, approved by the Federal Energy Regulatory Commission (FERC), will take effect November 1, 2025, and will impact AUB customers starting with their December billing cycle.

Beginning November 1, transportation charges for natural gas delivered to AUB will increase by approximately $0.146 per therm, more than double current rates.

“Average monthly usage for an AUB customer is around 35 therms,” said Eric Newberry, AUB General Manager. “While summer usage tends to be lower, winter consumption can double or more. Over the course of a year, the typical residential customer could spend about sixty dollars more because of this increase.”

Newberry emphasized that AUB has no control over the increase. “There are no alternative pipelines in East Tennessee to transport natural gas. It’s essentially a monopoly situation—similar to TVA for electric power. When these rates rise, we have no choice but to pass those costs through to our customers. AUB does not keep any portion of these increases.”

Natural gas transportation costs are a key component of AUB’s Purchased Gas Adjustment (PGA), which is recalculated monthly based on transportation, storage, and market gas costs.

“The good news is that the actual commodity cost of natural gas has remained relatively stable and affordable in recent months,” Newberry added. “If that trend continues, it will help lessen the overall impact of these higher pipeline transportation costs on our customers.”

AUB encourages customers to visit www.aub.org for energy-saving tips.

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