Confused by all the charges on your gas bill? Here’s a line-by-line explanation
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Confused by all the charges on your gas bill? Here’s a line-by-line explanation
Soaring natural gas bills compound Kansas City family’s financial worries
This graphic breaks down the charges on a real Spire Energy bill provided by a reader who lives in a 4 bedroom, 1.5 story house in Lee’s Summit. You’ll find similar line items on your Atmos Energy or Kansas Gas Service bill as well. Here are what the different charges mean.
1. Delivery Charges: These are the charges that pay for your gas company’s business expenses, like employee salaries, local construction and repair projects, customer support and profits. Spire plans to ask the Missouri Public Services Commission (MPSC) for another increase of these charges this spring. If approved, they would go into effect early next year.
2. Customer Charge: This is a flat amount that every natural gas customer is charged every month. It’s related to how many gas meters you are being billed for– generally that’s one per house or apartment.
3. Winter Usage line 1: This is the volumetric charge for gas usage, meaning it depends on how much gas you use. This particular bill splits the volumetric charge into two parts: this one is the gas used before this rate increased on Dec. 23, 2021.
4. Winter Usage line 2: This amount covers the gas used after Spire’s winter rate increased on Dec. 23, 2021.
5. Pipeline Upgrade Charge: This is a special surcharge to help cover the cost of pipeline upgrades. Once a new rate goes into effect, this charge is lumped into the volumetric delivery rate in the line above. Spire has filed to raise this charge in late 2022 to cover $11.3 million in infrastructure upgrades.
6. WNAR: This acronym stands for Winter Normalization Adjustment Rider, which adjusts the delivery charge based on the weather. During unusually cold months, this rider will be higher, while during warmer months it will be lower. December of 2021 was 26% warmer than an average December in Kansas City, so the WNAR on this bill is very low.
7. Natural Gas Cost: This charge multiplies the amount of gas you used during the billing period by the PGA, or Purchased Gas Adjustment. The PGA is set by your gas company and approved by their regulator. It combines the wholesale price of natural gas with the cost of contracts to deliver that gas to Kansas City and store it until customers need it.
NOTE: In Missouri the PGA usually only changes once a year, while in Kansas it fluctuates month by month.
8. Usage: This is how much gas you used during the billing cycle. It’s measured in CCF, or hundred cubic feet. If you think this number is wrong, you may need to get your gas meter checked. This amount is multiplied by the PGA to calculate the Natural Gas Cost in the line above.
9.Taxes: This is the third and final portion of your natural gas bill. Taxes are levied by your state or city.
10. City Tax: This is a sales tax charged by the customer’s city for the utility services they purchased.
11. Franchise Tax: This is a portion of the gross receipts tax that the customer’s city charges Spire. Gross receipts taxes charge companies for all the sales they make, without deducting business expenses. Spire then passes this tax along to the customer. “We collect from customers and remit to the taxing authorities dollar for dollar,” said Spire spokesperson Jason Merrill.
12. Pipeline Upgrade Charge Tax: This amount is a small tax on the Pipeline Upgrade Charge (ISRS) amount in the Delivery Charges section of your bill.
13. Total Current Charges: This amount adds up your Delivery Charges, Natural Gas Cost, and Taxes to get the total amount on your bill. For many customers, this is the amount you’re expected to pay by the specified deadline. If you’re on a special payment plan, this number is just for your information. Your actual billed amount will be listed below this line instead.
Do you have more questions? Ask us at kcq@kcstar.com.