What Does a Gas Utility Cover?
Learn the essential functions of your gas utility, from delivering natural gas to understanding your bill and service responsibilities.
A gas utility provides an essential service, delivering natural gas to homes and businesses for heating, cooking, and water heating. Gas utilities are regulated entities, ensuring the safe and reliable provision of this energy source.
Gas Supply and Delivery
Gas utilities source natural gas from various producers and markets. This gas travels through an extensive network of pipelines, including large transmission lines that transport it over long distances, and smaller distribution lines that carry it into local communities and individual properties.
Upon reaching a customer’s property, the gas passes through a gas meter, which is owned and maintained by the utility. This meter accurately measures the volume of gas consumed, forming the basis for billing. Utilities ensure a continuous and reliable supply of gas, managing supply fluctuations and maintaining appropriate pressure within the system. Before distribution to end-users, an odorant, described as a rotten egg smell, is added to the naturally odorless gas, making leaks detectable for safety.
Components of Your Gas Bill
A natural gas bill comprises more than just the cost of the gas itself; it includes charges for the extensive services required to deliver it. The “Supply Charge” or “Commodity Charge” reflects the direct cost of the natural gas consumed, usually measured in therms or CCFs. This component can fluctuate based on wholesale market prices, but utilities pass this cost directly to consumers without a profit markup.
The “Delivery Charge” or “Distribution Charge” covers the expenses associated with transporting the gas through the utility’s pipeline network, maintaining the infrastructure, and covering operational costs. This charge includes both a fixed monthly fee, sometimes called a customer charge, and a variable amount tied to usage. Additional fees and taxes may appear on the bill, such as surcharges for energy efficiency programs, customer service, meter reading, and state or local taxes.
Utility and Homeowner Responsibilities
The scope of responsibility for gas lines and equipment is clearly divided between the gas utility and the homeowner. The utility is responsible for all gas lines and associated equipment up to and including the gas meter. This encompasses the main service line that connects from the street to the property and the meter itself, ensuring its integrity and accuracy.
Conversely, the homeowner is responsible for all gas piping and appliances located downstream of the gas meter, meaning within the house or on the property. This includes internal gas lines leading to furnaces, water heaters, stoves, dryers, and other gas-fueled appliances. Gas utilities also play a significant role in safety, responding to gas leaks on their infrastructure and providing emergency services, such as shutting off gas in hazardous situations. However, they do not cover appliance repairs or maintenance of customer-owned lines. Homeowners should contact 811 before any excavation to prevent damage to underground utility lines.