Financial Planning and Analysis

Why Is My Gas Bill So High?

Understand the root causes behind your high gas bill. Learn how external factors and your home's energy dynamics contribute to costs.

A high gas bill can be confusing, especially as seasons change. Understanding the factors contributing to your monthly natural gas expenses is the first step towards managing them. This article explores various reasons for increased gas bills, including how usage is measured, external market forces, and home inefficiencies.

Understanding Your Gas Bill

Your natural gas bill includes a supply charge for the gas commodity and a delivery charge for transportation and infrastructure. These components are often presented separately.

Natural gas usage is measured in therms or CCFs (hundred cubic feet). CCFs represent volume, while therms measure the gas’s energy content. Utilities convert volumetric meter readings into therms, which forms the basis for calculating your supply charge.

External Factors Influencing Cost

Factors beyond your control significantly influence your gas bill. Colder temperatures increase heating demand, leading to higher consumption. Prolonged cold weather forces heating systems to work harder, increasing gas usage. “Degree days” quantify heating demand, with more indicating colder weather and higher consumption.

Market prices for natural gas also impact your supply charge. Wholesale prices fluctuate based on supply, demand, production levels, storage, and geopolitical events. These changes are passed to consumers, especially those on variable rate plans, causing month-to-month variations. Increased electricity demand during hot weather can also raise natural gas prices, as more gas fuels power plants for air conditioning.

Energy Consumption Within Your Home

Your use of natural gas appliances directly impacts your monthly bill. Thermostat settings are a major determinant of heating costs. Maintaining higher indoor temperatures in colder months requires your furnace to consume more gas. Setting your thermostat to 68°F during the day in winter, and lower when away or asleep, can significantly reduce gas consumption.

Hot water usage also contributes substantially to gas consumption, especially with a natural gas water heater. Activities like long showers or frequent hot water laundry increase demand. Water heaters can account for 15-20% of a household’s gas bill. Adjusting the water heater thermostat to 120 degrees Fahrenheit can conserve gas without sacrificing comfort.

Older gas appliances, like furnaces and water heaters, may operate less efficiently than newer models. Regular maintenance, such as replacing furnace filters monthly and annual professional tune-ups, ensures optimal efficiency. Some older appliances have continuously burning pilot lights, consuming a small, constant amount of gas.

Home Energy Loss

Your home’s structural integrity impacts how much gas is needed to maintain comfortable indoor temperatures. Inadequate insulation in walls, attics, and floors allows heat to escape, forcing your heating system to run more frequently. Poorly insulated homes can lose a substantial percentage of heat, making furnaces work harder. Upgrading insulation can lead to energy savings, potentially reducing heating and cooling costs by 15-50%.

Drafts and air leaks also cause energy loss, allowing warm air to escape and cold air to infiltrate. Common sources include gaps around windows, doors, electrical outlets, and plumbing penetrations. Sealing these openings with caulk or weatherstripping prevents conditioned air from escaping, reducing your heating system’s workload. Even small leaks can lead to significant energy waste.

Windows and doors, especially older single-pane models, can be sources of heat loss. Heat transfers through glass or escapes through gaps in frames. Replacing inefficient windows and doors or adding weatherstripping and heavy coverings can help retain warmth. Addressing these areas maintains a stable indoor temperature, reducing constant heating and lowering gas consumption.

Potential Issues and Checks

Less common issues can also lead to a high gas bill. A gas leak is a safety concern and can increase consumption. Natural gas is odorless, but utilities add a “rotten egg” smell for detection. Other signs include a hissing sound near gas lines or dying vegetation near outdoor pipes. If you suspect a gas leak, evacuate immediately and contact your gas company from a safe location.

A malfunctioning gas meter or billing errors, though infrequent, can result in incorrect charges. An over-reading meter or clerical mistakes can lead to higher bills. If other causes are ruled out, contact your gas company to investigate a potential meter issue or billing discrepancy. Utilities have procedures for testing meter accuracy and correcting past bills, potentially issuing refunds for overcharges.

Changes in household occupancy or daily habits can also increase gas consumption. More people living in the home or someone working from home can naturally increase heating, hot water, and appliance usage. Extended periods of entertaining guests or increased use of gas-powered outdoor equipment can also contribute to higher bills. Understanding these changes helps contextualize increased gas expenses.

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