Utility Operations and Finance


Utility Operations and Finance

AGA member companies strive to operate natural gas systems more productively, improve performance and reduce operating costs to help continue to meet the needs of customers safely and reliably.

Natural Gas Utility Rate Structure: The Customer Charge Component - 2015 Update (May 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. 
What Am I Paying for in My Natural Gas Bill? (Energy Analysis 05/31/2011)

When a residential customer gets their natural gas bill, they tend to focus on the total cost of the bill and may not realize that the utility retains only a fraction of the payment as income. In fact, over half of the bill for the typical residential customer goes toward 1) the purchase of gas from a producer or marketer and 2) the delivery of gas to the utility by an inter- or intrastate pipeline. The utility then incurs operational costs to get that gas to the customer, including delivery expenses, measuring the amount of gas consumed, and sending out the bill.
Utility Customer Arrearage and Disconnect Survey - Fall 2010

Based on a survey of AGA members, more customers were able to stay current on their bills and fewer customers had to be disconnected from utility service in 2010  than compared to the prior year. Nationally, the sample shows that: