Paying utility bills are usually a chore and, with the terms and lingo involved, trying to understand your gas bill just adds to the frustration. Some companies provide definitions on the bill, and most have a page online that explains natural gas terms. However, while it may be clear what amount you’re paying for a therm, what exactly is a therm?
Here’s a quick glossary of frequently used natural gas terms that will help you understand your gas bill. Note that different natural gas companies use different terms, so you may not see all of these on your bill.
- Base Charge or Customer Charge: Charge assessed to run the natural gas company i.e. to read meters, issue bills, and maintain lines. This charge doesn’t fluctuate with usage. When comparing gas plans at Allconnect, it’s important to note what this charge is as they may vary by company.
- BTU (British Thermal Unit): A measure of energy used as a conversion factor to calculate the amount of gas consumed (CCFs) in therms. The BTU factor fluctuates monthly as heat content varies.
- CCF: A measurement in hundreds of cubic feet that is used to measure the natural gas used during the billing period.
- Consumption Charge: Calculated by multiplying your natural gas consumption (expressed in therms) by your energy rate. Energy rates can vary depending on your plan; compare promotions and rates at Allconnect.
- Energy Rate: The multiplier by which the total natural gas consumption (expressed in therms) is multiplied. Rates vary by service plan and they can be fixed or variable depending on where you live. Introductory offers may impact the rate as well.
- Fixed Rate or Variable Rate: Your bill should specify which plan you are on. See How to Choose Between Fixed vs Variable Rate Plans for details on the difference. To compare current rates, go to Allconnect’s natural gas page.
- Therm: The industry standard unit of measure for which all natural gas consuming customers are charged.
Other Rates used in determining gas bills: While the terms listed above are standard, companies have additional charges that vary. Look online or call the company for a specific explanation. Two examples of these are:
- DDDC (Dedicated Design Day Capacity) to cover the common costs of delivering gas based on a customer’s demand on the system on the coldest day of the year.
- Other companies may have a Weather Normalization Adjustor (WNA) that factors in temperature extremes.
Other charges: Depending on the company, your bill may have a fee called a“pass-through charge” or “public purpose program surcharge.” These are regulated charges that may support state-mandated gas assistance programs for low income customers, energy efficiency programs, and public-interest research and development. DDDC may be included here.