Full Answer
How much does a therm of natural gas cost?
The average natural gas cost per therm is $0.95 or $9.52 per thousand cubic feet. One therm is equal to 100 cubic feet of natural gas. Most households use natural gas for heating the home, heating water, and appliances. What is a good price per therm? The average cost of natural gas per therm varies considerably by season and location.
What is the difference between a CCF, MCF, and Therm?
Terminology
- Btu: (British Thermal Unit) is the amount of heat it takes to raise 1 pound of water from about 39°F to 40°F
- Therm: 1 therm equals 100,000 Btu
- CCF: Exactly 100 cubic feet of natural gas
- MCF: Exactly 1,000 cubic feet of natural gas, or 10 CCF
How many Btus are in a therm of natural gas?
Therms: one therm equals 100,000 BTUs. MCFs: One cubic foot of natural gas is equal to 1,028 BTUs. Therefore, an MCF (one thousand cubic feet) is equal to 1,028,000 BTUs. CCFs: (one hundred cubic feet) is equal to 102,800 BTUs.
How many therms are in a cubic foot of natural gas?
As a result, 100 cubic feet of natural gas = 103,700 Btu, or 1.037 therms. The exact amount depends on the quality of the gas and how much of it is used before it is burned. Natural gas is composed of approximately 80% methane and 20% other gases.
How to calculate natural gas per therm?
The key is to find the heat content of natural gas that your energy provider uses. As noted above, that varies, but the national annual average in 2019 was 1,037 Btu per cubic foot, where 1 Ccf equals 1.037 therms. Using that value, if you have the price in dollars per Ccf, dividing the price by 1.037 will get you the price per therm. Conversely, if you have the natural gas price per therm, you can multiply that by 1.037 to get the price per Ccf.
How are therms priced? And why are therms priced the way they are?
Natural gas is a frequently traded commodity. An interplay of complex factors affect prices. Natural gas prices can be volatile, so exploring your options may not be such a bad idea. It also helps to understand therm prices and why prices are the way they are.
How much heat does natural gas produce?
In 2018, the annual average heat content of natural gas in the United States was 1,036 Btu per cubic foot. So, on average across the country, 1 Ccf (or 100 cubic feet) of natural gas was 103,600 Btu, or 1.036 therms.
What is a BTU in natural gas?
You might have seen terms like “therm,” “Btu” and “Ccf.”. Here is what they mean. A Btu measures the heat value of natural gas.
What states does Constellation gas service?
Constellation offers natural gas to residential customers in many states, including Georgia, Maryland, Ohio, Massachusetts and Pennsylvania. View our current natural gas rates and decide if switching to Constellation makes sense for you.
What are the drivers of demand for natural gas?
Like every commodity, supply and demand play a part. During times of high demand and low supply, the price goes up. Season, weather and economic strength are major drivers of demand. Lastly, state regulations and taxes add costs to your bill over and above the cost per natural gas therm.
What is the BTU factor?
BTU Factor: British Thermal Units measure the amount of energy used to raise the temperature of one pound of water by one degree Fahrenheit – so the energy required to produce heat. Therms: Units of heat energy equal to 100,000 BTU and the unit we use to measure the natural gas consumed.
What is a customer service charge?
Customer Service Charge: This small, fixed fee covers the cost of servicing and maintaining your account. It also allows us to provide excellent customer support if you have a question or concern!
Do you have to pay sales tax on your bill?
State and Local Taxes: Sales tax must be applied to your total bill. It’s the law, so we kinda have to do it.
Do natural gas companies have bills?
If you have a natural gas company, you have energy bills. And if you don’t speak the natural gas billing language, it can be a little overwhelming. Lucky for you, natural gas is our first language. So, we’ve broken it down for you to make bill reading a snap.
How many BTUs is a therm?
One therm is equal to 100,000 BTUs. MCFs. An MCF is equal to one thousand cubic feet of natural gas. CCFs. A CCF is equal to one hundred cubic feet of natural gas. If you’re not sure which unit your gas company uses, just check your latest bill. This is also a good opportunity to check the price per unit and compare it to your last several bills ...
How to lower gas bill?
The obvious strategy is to simply use less gas: set the thermostat a little lower in the winter, take shorter showers and use the microwave a little more often.
What Affects the Cost to Run a Gas Appliance?
Using this method, figuring out the cost per hour of using your gas appliances is fairly simple. But as you take a closer look at your bill, you may find that things start to get tricky. Here are some of the variables that can affect the accuracy of your back-of-the-envelope calculations:
What are the units used to measure gas?
Instead of a universal unit like kWh, different gas utilities use different units to measure gas use. Your gas company likely uses one of the following: 1 BTUs, or British Thermal Units. This is the amount of heat required to increase the temperature of one pound of water by one degree Fahrenheit. 2 Therms. One therm is equal to 100,000 BTUs. 3 MCFs. An MCF is equal to one thousand cubic feet of natural gas. 4 CCFs. A CCF is equal to one hundred cubic feet of natural gas.
How many BTUs are in a cubic foot of natural gas?
MCFs: One cubic foot of natural gas is equal to 1,028 BTUs. Therefore, an MCF (one thousand cubic feet) is equal to 1,028,000 BTUs.
How to calculate your bill by appliance?
To calculate your bill by appliance, you’ll need to estimate how many hours you use each appliance in a given month. This is easier said than done accurately, especially when it comes to appliances like your water heater.
How do electric companies bill their customers?
Virtually all electric companies bill their customers the same way: they measure electricity usage in kilowatt-hours (kWh), multiply that figure by the current kWh rate, add in service fees and charge customers for the total. Natural gas companies are more varied in their approach.
How is My Natural Gas Bill Determined?
Our rates are regulated and approved by the California Public Utilities Commission (CPUC). The Current Charges on your bill are based on three components:
What Other Charges Might I See on My Bill?
As a convenience, we provide billing services to other companies selling energy-related or home safety-related products and services to our customers . Here is the contact information if you have any questions about these charges.
What is gas commodity?
Gas Commodity – the cost of natural gas purchased by SoCalGas on behalf of its customers.
What Does the Billing Factor Mean?
The billing factor adjusts the amount of gas measured for differences in delivery pressure, altitude and meter calibration. Because we cover such a wide geography, we make adjustments for differences in elevation and delivery pressure to reflect the heat value of the natural gas. This ensures that customers in all areas are charged equally for the value of the gas they use. Monthly billing factor information can be found here.
How is natural gas billed?
Natural gas usage is billed by the therm. One therm is roughly the amount of natural gas needed to run a typical residential furnace for one hour. Your gas meter measures the volume of gas in cubic feet, which is converted to therms on your bill.
What are the three categories of gas bills?
Making Sense of Your Gas Bill. Your natural gas bill is generally divided into three categories: delivery charges, supply charges and taxes. Delivery fees, such as the customer and distribution charges, cover the cost of getting gas to homes—plus a profit for the utility—and are set by the Illinois Commerce Commission (ICC). ...
How often should a gas utility read a gas meter?
Utilities should read a customer’s meter at least once every other month. But in the months your gas utility doesn’t visit your home, it will estimate your usage, based on last year’s usage for the same month, adjusted for weather.
What is the basic service charge?
It’s also called the basic service charge or the account charge. Purchased gas adjustment charge. Under the law, utilities don’t make a profit off this per-therm charge, which is used to pass along the price of gas that utilities pay on the market.
Does Illinois gas bill include PGA?
The chart below summarizes two major charges on your bill that are set by the Illinois Commerce Commission (ICC). Keep in mind that this chart does not include the Purchased Gas Adjustment (PGA), which fluctuates monthly based on the market price of gas and makes up a large chunk of your bill. Chart updated Nov. 2019
Can municipalities impose their own utility taxes?
Municipalities can impose their own utility taxes, but state law caps the amount they can collect. It’s also called a franchise tax. Regulatory tax. This tenth-of-a-cent tax helps fund the ICC, which regulates Illinois utilities.
Does the ICC approve gas charges?
The ICC doesn’t approve the charge in advance, but it does review the charge annually and can order a refund for customers if it finds the utilities weren’t using sound business practices to buy gas at a reasonable cost. Also called the cost of gas charge, natural gas cost, gas charge adjustment or gas supply charge.
What is a therm on a gas bill?
On most gas bills, you’re buying a certain number of “therms”. One therm is roughly the amount of energy you get from burning 100 cubic feet of natural gas. On your bill it may be referred to as 1 CCF. It’s also the most common method for how energy companies measure the amount of gas they’re selling you. Now, on to the different plans.
How long does a gas bill stay the same?
This means, regardless of usage, your bill will stay the same each month!
What is a fixed rate gas contract?
A “Fixed Rate” plan is a contract that keeps the cost per therm at, as the name suggests, a fixed rate. These plans can help even out the therm price over the year, meaning you’ll pay slightly less per therm during the winter and slightly more per therm over the summer. These plans generally require you sign a contract with your gas company for a minimum of 6 months.
What happens if you use gas more than you used the year before?
That means that if you used way more gas than you did the year before, the gas company will make you settle up and pay for that difference. On the other hand, if you used way less usage, the gas company will reimburse you for the difference.
What happens if you use less gas than you were expecting?
And, if you use more gas than what they were expecting, there’s a good chance they’ll simply remove you from the plan and make you pay the full price.
How long does a natural gas bill last?
These plans guarantee that your natural gas bill will remain at the exact same price for twelve months at a time, rather than fluctuate with your usage.
Does Georgia Natural Gas have guaranteed billing?
Several gas companies, including Georgia Natural Gas, have introduced “Guaranteed Billing” plans, which prevent your bill from changing each month. But are these plans a good deal?
