Key Takeaways
- Your natural gas bill is made up of supply charges (the cost of the gas itself), delivery charges (the cost to bring it to your home), and fixed fees (like service fees and taxes).
- Your gas usage (measured in therms or CCF) is the biggest factor in your bill. Track your usage over time to spot trends, and consider energy-saving tips to lower your consumption and save money.
- Taxes (like sales tax) and surcharges (for safety, environmental programs, or low-income assistance) are added to your bill. While you can’t avoid them, knowing what they’re for helps you understand the total cost.
- Late payments can lead to fees, service disconnection, or even credit score damage. Set up reminders, autopay, or contact your provider if you’re struggling to pay on time—they may offer payment plans or assistance.
Understanding your natural gas bill can seem complex, but breaking it down into its key components can make it much clearer. Here’s a comprehensive guide to help you understand each section of your natural gas bill:
Account Information
Your natural gas bill starts with basic details about your account and service. This section ensures you’re looking at the correct bill and provides essential identifiers for your records.
- Account Number: A unique identifier for your account, used for billing and customer service.
- Service Address: The location where the gas service is provided.
- Billing Period: The time frame for which you are being billed (usually a month).
Usage Summary
This section of your bill gives you a snapshot of how much natural gas you’ve used during the billing period. It helps you track your consumption and compare it to previous months.
- Current Usage: The amount of natural gas you used during the billing period, typically measured in therms or cubic feet (CCF).
- Previous Usage: Your gas usage from the previous billing period for comparison.
- Usage History: A graph or table showing your gas usage over the past several months or years.
Charges
This is the heart of your bill, breaking down the costs associated with your natural gas service. Understanding these charges helps you see where your money is going.
Supply Charges
This is the cost of the natural gas itself, which can vary based on market prices or fixed rates.
Delivery Charges
The cost to deliver the gas to your home, including maintenance of pipelines and infrastructure.
Service Fees
Fixed monthly charges for maintaining your account and service. Service fees are fixed charges that cover the cost of maintaining your gas service, regardless of how much gas you use. While you can’t eliminate service fees, you can manage your overall bill by reducing usage or exploring different rate plans. They typically include infrastructure maintenance, customer service, and administrative costs. These fees are separate from supply and delivery charges and are usually non-negotiable. Some examples of Service Fees:
- Monthly Service Charge:
- A fixed fee charged every month, regardless of how much gas you use.
- Meter Reading Fee:
- A charge for reading your gas meter, though many providers now use automated systems and may not itemize this.
- Account Maintenance Fee:
- Covers the cost of managing your account, including billing and customer service.
Taxes and Surcharges
Taxes and surcharges are additional costs added to your natural gas bill, often mandated by government agencies or used to fund specific programs. These charges can vary depending on your location, local regulations, and your gas provider. Here’s a detailed breakdown of typical taxes and surcharges you might see on your bill:
- Sales Tax
- What It Is: A percentage-based tax applied to the total cost of your natural gas service, including supply and delivery charges.
- Why It’s Charged: Sales tax is a standard government tax on goods and services, and natural gas is no exception.
- Gross Receipts Tax (GRT)
- What It Is: A tax on the gross revenue of the gas company, which is often passed on to customers.
- Why It’s Charged: This tax is levied by state or local governments on utility companies.
- State Utility Tax
- What It Is: A tax specific to utility services, including natural gas.
- Why It’s Charged: This tax helps fund state government operations and infrastructure projects.
- Local Municipal Tax
- What It Is: A tax imposed by your city or town on natural gas usage.
- Why It’s Charged: This tax supports local government services and infrastructure.
- Franchise Fee
- What It Is: A fee paid to local governments for the right to operate gas lines on public property.
- Why It’s Charged: This fee compensates the local government for the use of public land and infrastructure.
- Environmental Surcharges
- What It Is: Fees used to fund environmental programs, such as renewable energy initiatives or emissions reduction projects.
- Why It’s Charged: These surcharges support efforts to reduce the environmental impact of natural gas usage.
Late Payment Charges
Late payment charges are fees applied to your natural gas bill if you fail to pay by the due date. These charges are designed to encourage timely payments and compensate the gas provider for the administrative costs associated with handling late payments.
Rate Information
Your rate structure determines how much you pay for natural gas. This section of your bill explains the pricing details and any applicable rate plans.
- Rate Schedule: The specific rate plan you are on, which can affect your supply and delivery charges.
- Price per Therm/CCF: The cost per unit of natural gas.
Meter Information
Your gas meter measures how much natural gas you use. This section of your bill shows the readings and how your usage is calculated.
- Meter Number: Identifier for the meter at your property.
- Current Meter Reading: The current reading from your gas meter.
- Previous Meter Reading: The reading from the last billing period.
- Usage Calculation: The difference between the current and previous meter readings, converted into therms or CCF.
Payment Information
This section of your bill outlines how much you owe and when it’s due. It also provides options for paying your bill.
- Total Amount Due: The total amount you need to pay for the billing period.
- Due Date: The date by which payment must be made to avoid late fees.
- Payment Methods: Options for paying your bill (online, mail, in-person, etc.).
Additional Information
This section of your bill includes important messages from your gas provider and contact information for customer service. It’s a good place to look for updates or special programs.
- Messages: Important notices from your gas provider, such as rate changes, safety tips, or conservation programs.
- Contact Information: Customer service details for questions or concerns.
Tips for Managing Your Natural Gas Bill
Managing your natural gas bill effectively can help you save money and reduce your energy consumption. Here are some practical tips:
- Monitor Usage: Keep an eye on your usage history to identify trends or spikes in consumption.
- Energy Efficiency: Implement energy-saving measures, such as sealing leaks or upgrading appliances, to reduce your gas usage. Many providers offer rebates, discounts or other incentives for upgrading your home’s energy efficiency.
- Budget Billing: Some providers offer budget billing plans that average your annual usage to provide consistent monthly payments.
- Compare Rates: If you have a choice of providers, especially in deregulated states, compare rates and plans to ensure you’re getting the best deal for your home.
Common Terms You Might Find On Your Natural Gas Bill
Understanding key terms can help you make sense of your bill and communicate effectively with your provider. Here are some commonly used terms:
- Therm: A unit of heat energy equal to 100,000 BTUs.
- CCF (Hundred Cubic Feet): A unit of volume for natural gas. One CCF is approximately the same as one therm.
- BTU (British Thermal Unit): A measure of heat energy.
By breaking down each section of your natural gas bill, you can better understand it and take control of your energy usage and costs. If you have further questions, don’t hesitate to reach out to your gas provider for clarification!
FAQs About Your Natural Gas Bill
Why is my natural gas bill higher than usual?
How is my natural gas bill calculated?
What are common fees and charges on my gas bill?
How can I lower my natural gas bill?
How Are Service Fees Calculated?
Your Location: Fees may differ based on the cost of maintaining infrastructure in your area.
Your Provider: Different gas companies may have different fee structures.
Rate Plans: Some providers may include service fees in their delivery charges or offer plans with lower fees but higher usage rates.
How Do I Identify Service Fees on My Bill?
Why Are Service Fees Charged?
If you use very little gas in a month, the service fee ensures the provider can still maintain the infrastructure and services you rely on.
These fees help distribute costs fairly among all customers, regardless of individual usage levels.
What Do Service Fees Typically Cover?
Infrastructure Maintenance: Covers the cost of maintaining pipelines, meters, and other equipment needed to deliver gas to your home.
Customer Service: Supports call centers, billing systems, and other services that help you manage your account.
Administrative Costs: Includes expenses related to processing payments, sending bills, and managing accounts.
Safety and Compliance: Funds safety inspections, leak detection, and compliance with government regulations.
Emergency Services: Covers the cost of responding to emergencies, such as gas leaks or outages.
How Can I Avoid Late Payment Charges?
Set Up Automatic Payments: Enroll in autopay to have your bill paid automatically from your bank account or credit card.
Use Online or Mobile Payments: Pay your bill online or through your provider’s mobile app for quick and convenient payment processing.
Sign Up for Budget Billing: Some providers offer budget billing plans that average your annual costs, making payments more predictable and easier to manage.
Contact Your Provider: If you’re unable to pay on time, contact your provider to discuss payment arrangements or extensions. Many providers are willing to work with customers to avoid late fees.
How Can I Dispute Late Payment Charges?
Review Your Bill: Check the due date, payment history, and late fee policy to confirm the charge is valid.
Contact Customer Service: Call your gas provider to explain the situation and request a waiver or adjustment.
Provide Documentation: If you have proof of payment (e.g., a receipt or bank statement), share it with your provider to resolve the issue.
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.