How do I Understand a Gas Bill?

Understand your gas bill to calculate how much you are paying per cubic foot.

There are many different parts, numbers and abbreviations in a gas bill. Without knowing what the abbreviations and numbers mean, it is difficult to entirely understand your gas bill. Because there often is competition in the gas industry, it is important to understand how much you are being charged per cubic feet of gas and if the gas prices have changed. By understanding your gas bill you can save money on your gas bill and set personal finance goals for you and your family.

Instructions

1. Look for the abbreviation CCF on your gas bill. CCF is the unit most companies use to measure gas. One CCF is equivalent to 100 cubic feet of gas. You may see a price per CCF, which is how much you are being charged per 100 cubic feet of gas you use.

2. Look for the word "therms" on your gas bill. If you did not have CCFs on your bill it is because your company measures in Therms. Therms are the heating value of gas that you used, another form of CCFs.

3. Look for the abbreviation EGC, which stands for expected gas cost. The EGC is the price the local gas utility expects to pay for the next rate period. Gas prices are constantly going up or down; therefore, the gas companies have to constantly change their prices as well. The EGC is the company's estimate of what the gas prices will be when your next bill rolls around. You may have a fixed rate plan which means you pay one price for gas, no matter the outcome of prices rising or falling.

4. Locate the section of the bill where the charges are added up. You may see charges called customer charge, distribution charge or adjustment charges. These charges are required by the state for distributing costs, taxes and fluctuations in gas prices.

References

• Massachusetts: Understanding Your Gas Bill
• Ohio: Understanding Your Natural Gas Bill

Resources

• PECO: Sample Bill