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How to Read your Bill

Your bill has the following components: Commodity Charge, Customer Charge, Distribution Charge, Upstream Pipeline Charge, tax and franchise fees and Usage Factor as described below. For more information about the Wyoming Pass-On Rate [Regulated Rate] click here.

Customer Charge

This charge recovers certain customer-specific costs to provide service, such as meter reading, billing, customer service, and having customer specific facilities in place, ready to serve. It is billed each month as a flat fee, does not vary with gas usage, and applies regardless of whether a customer uses any gas in a particular month. For Wyoming Choice Gas customers, the Customer Charge includes an amount to recover 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 Public Utilities or Service Commissions in each state.

Commodity Charge

This charge recovers the cost of the natural gas itself. Wholesale natural gas prices are deregulated pursuant to federal law and are established in the competitive free market. In Colorado, natural gas commodity costs are passed through to our customers at no profit to SourceGas, and are subject to approval by the Colorado Public Utilities Commission. In Wyoming and Nebraska, you have the option of buying directly from suppliers under their various offerings through the Choice Gas program.

In Wyoming, if you do not select a Choice Gas supplier, you will automatically roll over to the Pass-On Rate [Regulated Rate]. SourceGas buys gas and passes the cost on to you pursuant to Wyoming Public Service Commission regulation. The commodity charge on your bill reflects either the price being charged to you by your selected Choice Gas supplier, or the current Pass-On Rate [Regulated Rate] as set forth in the tariffs applicable to your service area.

Upstream Pipeline Charge

In Colorado, this charge recovers costs such as gathering, processing and interstate transmission of natural gas. Upstream pipeline costs are passed through to our customers and are subject to approval by the Colorado Public Utilities Commission.

Distribution Charge

This charge recovers the cost to deliver your gas through our local distribution pipeline system. It includes costs such as the installation, operation and maintenance of our pipelines, as well as safety services. All customers pay the same distribution tariff rate applicable to their respective service area and billing class.

The Distribution Charge for each customer is based on the amount of therms consumed multiplied by the distribution rate. For Wyoming Pass-On-Rate [Regulated Rate] customers in the Casper and Torrington Divisions, the distribution charge includes the cost of maintaining an inventory of gas for delivery from storage.

In Nebraska, Distribution Charges for Residential and Commercial customers have two tier levels based on the amount of gas consumed each billing period. Therefore, some customers may see two Distribution Charges on their bill. For example, Residential Distribution Charges will change after 20 therms of usage, Small Commercial Distribution Charges will change after 40 therms of usage and Large Commercial Distribution Charges will change after 80 therms of usage for each billing period. Changes in Distribution Charges may occur from time to time and are subject to the approval of the Public Utilities or Service Commissions in each state.

Tax and Franchise Fees

These fees, if applicable, 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.

Demand Side Management Cost Adjustment (DSMCA)

Monthly and Volumetric Charges
In Colorado: These charges recover costs associated with energy efficiency programs that are mandated by the State and approved by the Public Utilities Commission. These costs are recovered through both a fixed monthly charge and a volumetric charge.

CCF, Meter Usage, Therms, and Usage Factor:

The natural gas meter at your premise measures your consumption in hundreds of cubic feet (CCF) and is shown on your bill as the “Meter Usage”. SourceGas converts this volume-based measurement into an energy unit called “Therms” and bills based on the number of Therms used, the “Billed Usage”. A Therm is equivalent to 100,000 British Thermal Units (BTUs) of energy. Metered Usage is multiplied by the “Usage Factor” displayed on your bill to convert to Therms. The Usage Factor is based on the underlying energy content of a CCF of natural gas in your area, and your atmospheric pressure and meter pressure.