More than 177 million Americans use natural gas to cook a hot meal, heat their water or warm their houses. Many parts of the country have felt the chill of winter and that means folks are using more natural gas. The American Gas Association has developed a video to explain what goes into your natural gas bill.
Your bill is essentially comprised of three parts:
- Gas you used: Often, the largest part of your bill is based on the amount of natural gas you use each month. The United States has an abundance of clean natural gas and that has led to stable and affordable prices. Utilities do not make a profit on the gas they deliver to your home or business.
- Delivery cost: The public utility commission, a group of elected or appointed officials, sets the rate that your utility can charge each month. Included in this cost is maintenance, upgrades of the pipes that deliver natural gas to your home or businesses and everything else that is needed to help ensure safe and reliable delivery of natural gas.
- Local, state and federal taxes.
During the 2013-14 Winter Heating Season, the natural gas delivery system in the United States achieved historic levels of performance. More natural gas was delivered through more pipelines to more customers than ever before, and customer bills remained affordable. Residential customer bills increased only 10 percent on average from the prior winter – an increase mostly due to higher consumption.
AGA expects relatively warmer temperatures this winter based on information from the climate Prediction Center, which may lead to a reduction in demand. Natural gas prices are likely to be slightly higher, resulting in an increase in customer bills of about seven percent this winter.
Promise Delivered is an AGA study of the planning, preparation and performance of the natural gas system during the 2013-14 Winter Heating Season. Utilities work all year to prepare for the possibility of extreme temperatures and employ a portfolio approach to help ensure they can meet the needs of their customers at affordable prices on the coldest days of the year. Before last year’s extraordinary winter concluded, they were already preparing for this winter cycle.