If you’re like most folks, you get your gas bill, check out what you owe, gripe a little and then pay it! A little study of your monthly statement, however, can give you some insight into what goes into your bill and what you can do to save energy and reduce your heating costs.
It’s not hard if you understand the terminology on your gas bill.
The following is a list of the most important terms and abbreviations used on your gas bill.
BTU – Stands for British thermal unit. It’s a measure of heat energy.
Therm, or thm – Short for thermal unit. Often used on bills as a reference to BTUs.
CCF and MMF – How much energy you used expressed as a volume of gas. CCF stands for 100 cubic feet of gas, while MMF stands for 1,000 cubic feet of gas.
Procurement or commodity charge – This is the amount you pay for your gas usage in a particular month. There’s no markup on this cost.
Gas transmission charge – This is the cost of getting the gas to your home.
Baseline allowance – This is your baseline, determined by your local utility, on how much gas you’ll probably use to meet your basic needs. Consuming more energy than your basic needs will see you pay progressively more.
Gas cost adjustment – This will show on your bill as a charge or a credit. Your gas company estimates what the cost of its gas will be. If they pay more, you pay an extra charge. If they pay less you get a credit.
Knowing just a little about the terminology used on your gas bill will allow you to understand it better and find ways to save energy and reduce your bill.