How to Read your Bill
Your bill has the following components: Commodity Charge
,
Customer Charge
,
Distribution Charge
,
tax and franchise fees
and
Usage Factor
as described below.
Commodity Charge
The commodity charge on your bill reflects either the price being charged to you by your selected Choice Gas Program Supplier, or the current Pass-On Rate [Regulated Rate] set forth in SourceGas's tariffs applicable to your service area. The Commodity Charge includes any applicable upstream costs, such as gathering and processing, and interstate pipeline transmission. Wholesale natural gas prices are deregulated pursuant to federal law and are established in the competitive free market. You have the option of buying directly from Suppliers under their various offerings through the Choice Gas Program. If you do not submit a valid selection during the selection period, you will automatically roll over to your current Supplier and Pricing Option. If you are a Pass-On Rate [Regulated Rate] customer, SourceGas will buy gas from wholesale suppliers and pass the cost on to you pursuant to Wyoming Public Service Commission regulations.
Customer Charge
This charge is billed each month as a flat fee and does not vary with gas usage. This fixed charge applies regardless of whether or not a customer uses any gas in a particular month. Fixed costs include meter reading, billing, accounting and collection services, and having facilities in place ready to serve. For Choice Gas Program customers in all service areas who are not receiving service under the Pass-On Rate [Regulated Rate], the Customer Charge includes an amount that recovers some of the costs of administering the Choice Gas Program. Changes in the Customer Charge may occur from time to time and are subject to the approval of the Wyoming Public Service Commission.
Distribution Charge
This charge covers SourceGas's cost to deliver your gas supply through the local distribution pipeline system. This includes the cost of facilities, operation and maintenance, customer service, safety services, etc. All customers pay the same distribution tariff rate applicable to their respective service area and class of service, regardless of who provides their gas supplies. For Pass-On Rate [Regulated Rate] customers in the Casper and Torrington divisions, the distribution charge includes an additional cost for maintaining inventory of gas for delivery from storage. Changes in distribution rates may occur from time to time and are subject to the approval of the Wyoming Public Service Commission.
Tax and Franchise Fees
These fees recover local and state taxes, and municipal franchise fees, charged by your local and state governments. They are applied to each customer's monthly billing. SourceGas collects these taxes and fees and remits all monies collected to the applicable local and state governments.
Usage Factor
The natural gas meter at your address measures your consumption in hundreds of cubic feet (CCF). KMI converts this volume based measurement into a heat value measurement called Therms. Therms are measures of the energy content in natural gas. The impact of this heat content and the delivery pressure is reflected in the "Usage Factor" displayed on your bill. The CCF volume, shown in the "Metered Difference" portion of your bill, is multiplied by the "Usage Factor" to determine the number of Therms used. The "Billed Usage" amount on your bill therefore reflects the units of energy consumed rather than the volume of gas delivered.