Although the regulation of rates charged by natural gas utilities has not changed as much as it has for electric companies, the gas industry has become increasingly competitive. All gas utility customers may now choose their own gas supplier, which offers competitive rates. It is helpful to understand these energy terms:
  • Local distribution company (LDC): This is your gas supplier, the local company that supplies natural gas to homes and businesses in its service area.
  • CCF: This is the standard measurement for natural gas. One CCF is 100 cubic feet of gas.
  • Therms: The heating value of the gas you use is measured in therms. Some customers' bills include a therm factor, which converts gas usage from CCF into therms.

The amount of your bill is based on your billing rate and the amount of gas you use, which is measured in one of two ways: 1) the number of CCFs or 2) the number of therms used during your billing period. Like electricity, your natural gas usage is greatly influenced by heating and air conditioning, cooking, the number of computers and appliances you use and other factors. See Energy Saving Tips for more information.

The charges listed on your bill generally fall into two categories: Gas Delivery and Gas Supply. The rates charged for natural gas vary among the various local distribution companies operating in the Commonwealth. However, LDCs are prohibited from making money on the price of natural gas. The gas charge listed on your bill is the actual price that your gas company paid for the fuel.