Understanding your gas bill

Here is some helpful information for residential and small business customers on how to read and understand their gas bill. You can also find information on your billing options and calculating your costs.

Your gas provider

Your gas utility company is responsible for delivering gas safely and maintaining pipelines in your area. The 6 investor-owned companies are Berkshire Gas, Eversource Gas and NSTAR Gas, Liberty Utilities, National Grid, and Unitil.

Find your company’s current rates on the DPU gas supply and delivery charges page.

Your gas bill

Select your gas utility provider below to explore sample bills and details.

Berkshire Gas customers  Eversource and NSTAR Gas customers  Liberty Utilities customers  National Grid gas customers  Unitil gas customers 

Determining your gas costs

Natural gas is measured in units known as therms. How much you pay depends on:
•    The price of natural gas, 
•    The amount that you use, and 
•    Your rate class. 

Your monthly gas bill is calculated by multiplying the cost of a therm by the number of therms used in that month. Your gas bill also includes a fixed, monthly customer charge.

Reducing your gas usage will help reduce costs on your bill. For more information about incentives and how to lower your bill, visit the Help saving energy webpage. If you are struggling to pay your gas bill, visit the Help paying your utility bill webpage.

Rate classes

Customer type	Rate code	Uses for gas	Typical monthly usage
Residential non-heating	R-1 and R-2	Water heating or cooking only	20–30 therms
Residential heating	R-3 and R-4	Space heating, water heating, cooking	100–130 therms (winter)
Commercial and industrial	G-40, G-41, G-42, G-43, G-44, G-50, G-51, G-52, G-53, and G-54	Space heating or processes in a commercial or industrial business	Varies

There are 2 categories of rate classes: residential and commercial & industrial. Residential customers in rate classes R-2 and R-4 pay discounted rates. Customers are eligible for discounted rates if they receive certain public benefits such as public or subsidized housing, social security income, fuel assistance, Home Energy Assistance Program (HEAP), or the Women, Infants and Children (WIC)  program.  

Breaking down your gas bill

Your monthly gas bill is made up of 2 main parts: supply charges and delivery charges. 

Supply charges

The gas supply charge (also known as the gas adjustment factor or GAF) is the cost of the gas itself. You can buy your gas from:
•    your local gas utility (the default gas supplier), or 
•    choose a competitive gas supplier or gas retail agent. Note that the DPU website lists the companies with an active license to serve customers.  Not all competitive gas suppliers or retail agents serve residential customers for your gas company even if they are licensed to do so. 

Delivery charges

Term	What it means
Customer charge	This is a fixed monthly charge that recovers the cost of meter reading, equipment, maintenance, and customer services. This charge does not change based on your gas usage.
Distribution charge	This charge recovers the cost of operating, maintaining, and completing essential investments to the company’s distribution system to continue to deliver safe and reliable service.
Distribution adjustment charge  (also known as local distribution adjustment factor or LDAF)	This charge recovers various operating and maintenance costs not included in the distribution charge. This charge includes costs such as environmental remediation, residential assistance, and the Gas System Enhancement Program.
Energy Efficiency Surcharge (or EES)	This charge recovers the costs associated with energy efficiency, known as Mass Save. It is collected through the LDAF but appears as a separate line item on customer bills.
Revenue decoupling	This charge reconciles a gas company’s actual distribution revenue with the approved distribution target revenue, to remove a disincentive to implement energy efficiency and demand reduction programs that encourage customers to lower energy usage and demand.

To learn more about GAF and LDAF rates, visit the DPU’s information on how gas rates are determined. For company-specific delivery rate information, including revenue decoupling, visit the DPU's Natural gas delivery rates and tariffs page.

Billing and rates

The rates charged for natural gas vary among the different distribution companies.  Please see the links under "Related" to the right of the webpage for specific rate information.  The DPU reviews all rates proposed by the distribution companies, whether in base distribution rate proceedings or other proceedings.  The DPU licenses competitive suppliers but does not oversee or regulate how they set their supply product prices.

If you select a competitive supplier, you will be paying both your distribution company (for the delivery charge) and the competitive supplier (for the supply charge).  Depending on the competitive supplier, you may receive one bill (combined billing) or 2 separate bills. In general, smaller consumers (residential and small commercial) will receive 1 bill from the distribution company with both supply and delivery charges.  

Resources

If you are having trouble paying your utility bill, visit the help paying your utility bill webpage.

If you need help resolving a problem with your electric or gas company, the DPU's Consumer Division can assist.  The Consumer Division’s automated telephone system allows consumers to opt for Spanish language recordings and/or Spanish-speaking staff.  Spanish, Cape Verdean Creole, Haitian Creole, and Portuguese speaking staff are also available to answer the toll-free line.

You can reach the Consumer Division via email at: [e-mail] or by phone at [phone] or [phone] (toll free)

Last updated:	December 18, 2025