What are the charges on my natural gas bill?
Here are descriptions of the various line items on the typical residential gas bill from your local gas distribution company (LDC). In Connecticut there are three LDC’s: the Connecticut Natural Gas Corporation (CNG) and the Southern Connecticut Gas Company (SCG) both of which are owned by Avangrid Inc. and the Yankee Gas Services Company (Yankee Gas) which is owned by Eversource. Rates for most of the various billing components differ if you are a customer on a heating or non-heating/general use rate.
- Customer Charge: This fixed monthly charge, called the “Customer Charge” by CNG and SCG and the “Customer Service Charge” by Yankee Gas, covers costs related to customer billing, meter reading, customer service and maintaining the service line. The amount of the customer charge varies by the type and size of customer, with larger customers paying higher monthly service charges. Residential customers that use natural gas for their main heating source have a slightly lower customer charge than those that do not. Currently, Yankee Gas charges $20.50 per month for Rate 1 (non-heating) and $17.00 for Rate 2 (heating). CNG’s monthly customer charge for Residential Service Heating Service (RSH) is $18.00 and $20.35 for Residential General Service (RGS). SCG’s monthly customer charge for RSH is $15.64 and $17.93 for RGS.
- Delivery Rate: This charge represents the price for moving natural gas from the point where the interstate gas pipelines meet the LDC’s distribution system to a customer’s home or business. Yankee Gas charges $1.6570 per hundred cubic feet (ccf) for Rate 1 (non-heating) and for Rate 2 (heating) charge $0.8894 per ccf for the first 30 ccf used monthly and $0.6345 per ccf for monthly consumption above 30 ccf. CNG’s delivery rate for RGS customers is $1.6870 per ccf and for RSH customers is $0.7392 per ccf for the first 30 ccf per month and $0.3307 per ccf for usage above that level. SCG’s delivery rate charge for RGS is $1.4159 per ccf and $0.9502 for the first 30 ccf per month and $0.3864 per ccf for usage above that for customers on rate RSH.
- Distribution Integrity Management Program (DIMP) or Gas System Improvement (GSI): DIMP is a rate mechanism for CNG and SCG to collect the costs, for gas mains and service line replacements that were not built into delivery rates at the time of the last rate case. This annual reconciling mechanism is associated with the cost recovery associated with the replacement of leak prone, cast iron and bare steel mains and service lines. CNG’s DIMP charge is $0.1568 per ccf for RSG customers and $0.0278 per ccf for RSH customers. SCG’s DIMP charge for RSH is $0.337 per ccf and $0.0741 per ccf for RGS.
Yankee Gas’ GSI charge is similar to the DIMP mechanism but also allows for the annual recovery of limited Core Capital projects were over and above those contained in the approved Rate Plan and not included in base rate recovery in the Company’s 2018 rate case. Yankee Gas’ GSI is currently $0.0973 per ccf. - Revenue Decoupling Mechanism (RDM): A ratemaking mechanism that is designed to collect or refund the difference between the approved annual distribution revenues with the actual distribution revenue collected. This annual reconciliation factor is established annually, including the prior year true-up, and is approved by PURA. Yankee Gas’s RDM charge is $0.0361 per ccf. CNG’s RDM is $0.061825 per ccf. SCG’s RDM is $0.0317356 per ccf.
- Purchased Gas Adjustment (PGA)/Gas Supply Rate: A charge that reflects the actual cost of gas supply that is established monthly in accordance with and pursuant to the Purchased Gas Adjustment Clause as approved by PURA. The PGA/Gas Supply rates varies from month to month based on gas supply contracts and market conditions. All gas supply costs for firm customers are recovered through this rate.
- Sales Services Charge (SSC): A charge that is designed to recover unique costs specific for those customers that receive their gas supply directly from the Company. Yankee Gas’ SSC is $0.0347 per ccf for Rate 1 customers and $0.0643 per ccf for Rate 2 customers. CNG’s SSC is $0.0183 per ccf for RSG customers and $0.0473 per ccf for RSH customers. SCG’s SSC for RSH is $0.0020 per ccf and $0.0032 per ccf for RSG.
- System Expansion Reconciliation (SER) adjustment: This rate collects expenses not covered by System Expansion (SE) rates related to expanding the natural gas system and converting customers to natural gas. This factor is established in PURA’s annual System Expansion Reconciliation proceeding and includes a prior year true-up of costs and revenues. Yankee Gas’ SER is $0.1122 per ccf for Rate 1 customers and $0.0436 per ccf for Rate 2 customers. CNG’s SSC is $0.1407 per ccf for RSG customers and $0.0283 per ccf for RSH customers. SCG’s SSC for RSG is $0.1743 per ccf and $0.0388 per ccf for RGH.
- Conservation Adjustment Mechanism (CAM): A charge on firm customer’s bills that collects the allowed conservation expenses. This factor is established annually as part of PURA’s annual C&LM proceeding. The current CAM rate is $0.0460 per ccf for the customers of all three LDCs