Columbia Gas Transmission Tariff Questions and Answers

Columbia Gas Transmission LLC (owned by TC Energy) is a pipeline that moves very large volumes of gas across multiple states. Every entity (including Santanna) that acquires gas that is transported through those pipelines has to pay the pipelines for the right to use the lines to move gas and store gas. Think of it as the equivalent of paying a toll road to drive on or parking for your car. Columbia recently substantially increased these charges to recover its own various costs of doing business. Every company that receives gas from these pipelines has to pay these fees. These fees are filed as tariffs with the Federal Energy Regulatory Commission (FERC), which regulates these entities.

The change will likely increase your overall natural gas bill.

The exact amount of the increase will vary depending on your usage and the updated tariff rates. However, we currently anticipate that your current rate will increase by approximately $0.15 per ccf. Santanna will provide more detailed information regarding the impact on your specific account.

We do not do this lightly. We are only doing this because federally-approved tariffs have been implemented, changing the costs for everyone involved in this business and taking gas from this pipeline. This does happen on occasion. This is why your contract contains The “Change in Law or Regulation” paragraph of your contract states: “In the event that any change in existing, statute, rule, regulation, order or other law or procedure or tariff promulgated by any government authority or gas utility, alters SES’ costs to perform or its economic returns under this Agreement, Santanna will notify you of revised pricing under this Agreement. Upon notification, you will have thirty (30) days to choose to either continue this agreement or terminate this agreement without penalty….” Columbia changed its tariff with FERC (a government authority) and that increased costs to suppliers. It’s important to note that, in other jurisdictions, when utilities make similar changes, sometimes the utilities charge these increases directly to customers rather than suppliers. But generally, these increases originate from the pipeline and affect everyone downstream.

If you would like to continue your service with Santanna, you do not need to take any immediate action. All of your contract terms (other than the rate) will remain in place.

You can cancel by enrolling with another supplier or notifying your broker, your utility (Columbia Gas), or Santanna that you wish to cancel.

To cancel your contract with Santanna, please contact your broker first with questions. Please do not hesitate to reach out to us at 866-692-1378 or [email protected] for additional assistance. Our representatives will assist you in the process and provide any necessary forms or steps.

We wish to provide you some flexibility because of the inconvenience and provide you a grace period. So any cancellation fees will be waived if you cancel with Santanna by March 14, 2025. Otherwise, cancellation fees may apply based on the terms of your current contract. Please refer to your contract or contact customer service for specific details regarding any potential fees.

If you decide to cancel after March 14, 2025, (after the grace period described above), the early termination fee or liquidated damages provisions of your contract at the time of cancellation will govern. To be clear, if you cancel after March 14, 2025, Early Termination Fees or Liquidated Damages may apply, as applicable in your contract.

Yes, your broker should be informed about any changes affecting your rates. They will be able to provide you with additional information or answer any questions you may have regarding this update. They can also help you find another supplier or cancel the contract with us.

Contact your broker first with questions. Please do not hesitate to reach out to us at 866-692-1378 or [email protected] for additional assistance. A representative will be happy to discuss the changes and assist you with any questions or concerns.