Is Your Gas Bill Confusing? Learn Commonly Used Terms

Natural gas is a clean and efficient method for heating your home and fueling your appliances. When your gas bill arrives each month, you probably glance at it, tear off the stub and send in a check. If you’ve ever really looked at your bill, you may have been confused about the many abbreviations and terms used by your gas company. By understanding the terms used on your bill, you may be able to help lower your fuel costs.

Here are some of the most common terms and what they mean.

• BTU refers to British thermal unit. It’s the term used on your gas bill to measure heat energy. Natural gas contains 1,028 BTUs, while one kilowatt of electrical energy provides 3,412 BTUs.
• Therm is another way to express units of energy on your gas bill. A therm equals 100,000 BTUs. When you’re shopping for appliances, look for ones which use fewer therms per hour to save money and energy.
• CCF and MCF are also ways your gas company may state energy use. A CCF is 100 cubic feet of gas, and an MCF is 1,000 cubic feet of gas.
• A procurement or commodity charge refers to the cost you pay for gas each month. Your gas company purchases natural gas from a provider and then in turn charges you.
• Delivery or gas transmission charges are the cost of getting the gas into your home.
• Baseline allowance or baseline charge is the amount of energy commonly used for basic fuel needs in our home. Gas companies charge the lowest rates for baseline usage.
• Gas cost adjustment is a variable amount which is expressed as a credit on your gas bill. It’s based on the difference between what the gas company thought you would use and what you actually used for the previous month.

For more information about understanding your gas bill or for any questions surrounding your HVAC system, contact Rinaldi’s Energy Solutions. We’re proud to serve homeowners in and around Orlando.

Our goal is to help educate our customers in Orlando, Florida and surrounding areas about energy and home comfort issues (specific to HVAC systems).  For more information about understanding your gas bill and other HVAC topics, download our free Home Comfort Resource guide.

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