Learn How To Read Your Gas Bill, And Lock In Savings Too
Natural gas is a common source of fuel for home heating. To make the best and most economical use of this resource, it pays to know how to read your gas bill. When you understand what you’re paying for every month, you’ll be better able to identify areas where you can conserve and save money.
- BTU: A standard measure of heat energy. BTU means British thermal unit. It can refer to the amount of heat energy that must be added to a home to raise the temperature or taken away to lower the temperature. It is also a measure that allows you to compare energy contained in different types of fuels.
- Therm: This term stands for thermal unit and is sometimes abbreviated as “thm.” On your gas bill, it indicates how many BTUs of energy you have consumed. A therm is equivalent to 100,000 BTUs.
- Procurement or commodity charge: The price you pay for the gas you use every month. This is usually the cost the utility company pays its supplier. In most cases, the gas company does not add a markup to this cost.
- Gas transmission or delivery charge: The utility company’s cost of transporting gas to your home.
- Gas cost adjustment: Like the cost of other fossil fuels, the cost of natural gas fluctuates. The gas company often estimates gas costs in advance. If the actual price is higher or lower than the estimates, the gas cost adjustment will produce an additional charge or credit, based on actual prices.
- Baseline allowance or charge: An estimate of the amount of energy you’ll need to meet basic household needs. This figure is based on the average energy usage in your geographical area. It is often mandated by state law.
Balance Point Heating & Air Conditioning brings expert knowledge and years of professional experience to every HVAC job we do in Fort Collins and surrounding Colorado communities. Contact us for more information on how to read your gas bill and conserve energy in your home.