ICYMI: Here’s What Makes Up Your Natural Gas Bill
ICYMI: If you’ve ever looked at a bill and wondered “OK, but what am I actually paying for?”, we’ve got you covered. Our piece “Here’s What Makes Up Your Natural Gas Bill” explains why bills can…
ICYMI: If you’ve ever looked at a bill and wondered “OK, but what am I actually paying for?”, we’ve got you covered. Our piece “Here’s What Makes Up Your Natural Gas Bill” explains why bills can change even when the underlying natural gas commodity price stays relatively low.
- Your bill is driven mainly by three things: how much you use (often weather-driven), commodity pricing and state/local policy and regulatory costs.
- Natural gas commodity prices today are 47% lower than they were before the Shale Revolution expanded domestic supply.
- Efficiency matters: the average natural gas home uses less fuel for the same applications than in past decades, and distribution system emissions have declined by more than 70% since 1990.
- A national “typical bill” snapshot shows 31% for the fuel itself, about 10% for taxes and policy costs on average (and in some states those costs can exceed 40%).
- The “delivery” side matters: roughly 10% for infrastructure plus 12% for depreciation/amortization, 17% for operations/administration, and about 7% tied to interest costs.
Affordability isn’t just a buzzword, and conversations like this help customers and policymakers separate commodity trends from policy and system costs. That clarity is a necessary foundation for constructive conversations about what moves bills.
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