Natural Gas Utility Rate Structure: The Customer Charge Component - 2015 Update (May 2015)

Report May 28, 2015

The largest part of a natural gas customer’s bill is the cost of the gas itself, over which the utility has little control.  This cost accounts for about 41 cents of every dollar of revenue received by a distribution utility.  The bill amount for the gas portion varies with price as well as amount consumed.  Natural gas utilities also incur costs that are not dependent on a customer’s consumption. 

This analysis updates a report done five years ago.  The purpose of this analysis is to illustrate the current levels of customer charges, estimate the portion of fixed costs that these charges cover, and track the historical growth of these charges.

Contact: Bruce McDowell at 202.824.7131 or atbmcdowell@aga.org.

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