Understanding My Residential Bill

As the cost of goods and services increase, we work every day to ensure we are providing you the safest, most reliable, lowest cost natural gas we can. We don't mark up or profit from the price you pay for natural gas. You pay what we pay. Take control of your monthly bill by learning more about the factors that determine what you pay and taking steps to lower your energy usage.

Rate Changes
The NJ Board of Public Utilities (NJBPU) approved rate changes for certain of the Consolidated Adjustment Charges (“CAC”), which affects the Usage Costs portion of your bill, effective February 1, 2023.

**The change in your monthly bill assuming usage of 100 therms per month is:**
Residential Therms 100*	January 1, 2023 bill	February 1, 2023 bill	Change
CAC increase	$147.69	$148.75	$1.06
* A therm is a unit of heat measurement used to calculate your gas usage and charges. 100 therms is for a typical winter month. Keep in mind everyone’s therm use is different so the cost increase will be different depending on the amount of therms used each month.

Natural Gas Prices are Decreasing
The market cost of natural gas (“BGSS”) has decreased. Because ETG does not profit from the cost of natural gas, we are passing along the savings to you. You pay what we pay. The NJBPU approved a 30.2% rate decrease for BGSS Charges, which affects the Gas Charges portion of your bill, effective March 1, 2023.

**The change in your monthly bill assuming usage of 100 therms per month is:**
Residential Therms 100*	February 1, 2023 bill	March 1, 2023 bill	Change
BGSS decrease	$148.75	$103.77	($44.98)
* A therm is a unit of heat measurement used to calculate your gas usage and charges. 100 therms is for a typical winter month. Keep in mind everyone’s therm use is different so the cost decrease will be different depending on the amount of therms used each month.

Estimated Meter Readings
Weather can interfere with our ability to read your meter. When weather is an issue, an estimated meter reading is used. Sometimes the estimate is higher than your actual natural gas usage and results in a higher than normal gas bill. If that happens, the adjustment will be reflected in the following month’s bill. Or, if you’d like, you can snap a photo of your meter reading and email it to correspondenceETG@sjindustries.com, or enter the meter reading in My Account and we'll adjust the bill. Be sure to include your name, service address, and meter reading in the email.

Cooler Weather
The temperature outside impacts when we turn our heat on and how warm we prefer our showers to be. Therefore, when the temperature drops, you may use more natural gas to heat your home and water. Visit Conserve for tips for saving energy & money.

Increase in Appliance Usage
Your natural gas appliances work harder during colder weather which could cause your bill to be higher.

Below is an explanation of the main sections of your gas bill to help you understand how your bill is calculated each month. It may be helpful to have your bill handy as you review the information.

Understanding Your Bill

There are two primary parts that make up your bill – Usage Costs and Natural Gas Costs.

Usage Costs

Service Charge

This charge includes administrative service costs (metering and billing, mailings, system maintenance and record keeping) and is incurred even if no gas is used.

Distribution Charge

This charge recovers the cost of moving natural gas through our pipelines to the meter at your home.

Consolidated Adj. (Adjustment) Charges

A combination of charges and/or credits approved by the BPU which includes the cost of programs that benefit customers and the community.

These charges include:

Conservation Incentive Program - This program removes the link between utility profits and the quantity of natural gas sold.
On-System Margin Sharing Credit (OSMC) - This rate is designed to refund portions of the profits acquired by ETG from on-system sales and transportation services to its residential customers.
New Jersey Clean Energy Program - A rate that covers the costs associated with State-mandated Clean Energy Programs, which promote and encourage energy efficiency in the use of electricity, gas, and renewable energy sources through financial incentives, programs, and services in New Jersey.
Universal Service Fund (USF) and Lifeline - A rate paid by all gas users in New Jersey to provide financial assistance programs for income-eligible customers. The charges help eligible customers pay their utility bills.
Remediation Adjustment Clause - A rate that covers the costs of remediating former manufactured gas plants.
Energy Efficiency Program - A series of programs in conjunction with the NJ Clean Energy Program, offering energy efficiency incentives to residential and commercial customers to help customers reduce energy usage and save money while stimulating the local economy. ETG is authorized to earn a return on Energy Efficiency Program investments and to recover related costs associated with these programs.
Infrastructure Investment Program - A multi-year program that funds modernizing and enhancing the safety and reliability of ETG’s gas distribution system by replacing vintage, at-risk facilities.

Natural Gas Costs

Basic Gas Supply Service (BGSS)

The cost of the physical gas you use for the billing month. It is calculated by multiplying your gas usage stated in therms by the cost per therm. ETG does not profit from this charge. This cost is passed on to you without markup.

Usage Detail

Your bill also includes calculation details.

Meter Reading: The meter at your home records the amount of gas usage in CCF (Centum Cubic Feet), which is then converted to therms (this is how natural gas usage is measured for billing purposes), using a therm factor.

Current Reading: Represents the current reading of your gas meter, which is determined by one of three methods:

Actual Meter Reading: Your reading was taken by a company reader.
Customer Reading: You reported your meter reading to us.
Estimated Meter Reading: ETG estimated your meter reading based on your previous usage and the weather. Any difference from your prior month’s estimate is automatically corrected when we take an actual meter reading. A meter may be estimated due to inclement weather or blocked access to the meter.

Start Reading: The amount of CCF recorded at the beginning of your read cycle.

End Reading: The amount of CCF recorded at the end of your read cycle.

CCF (Centum Cubic Feet): The measurement taken from your meter.

Therm: The basic unit for calculating your gas usage for billing purposes.

Therm Factor: Factor used to convert CCF to Therms.

The Process

It may also be helpful to understand the billing rate approval process.

Of the charges described, the Service Charge and Distribution Charge are reviewed and approved by the NJ Board of Public Utilities (“BPU”) on a periodic basis when the Company seeks a change in a rate case filing.

Consolidated Adj. Charges and Gas Charges (BGSS) may change annually based on proposals by the Company that are approved by the BPU.

Rate changes can occur throughout the year depending on when the BPU approves each filing.

The Service Charge is a monthly fixed charge. The Distribution Charge, Consolidated Adj. Charges and Gas Charges (BGSS) are calculated by multiplying the total therms used in a month by the rate per therm.

The amount of gas you consume directly impacts your Distribution Charge and Gas Charges (BGSS); however, the amount of gas you use does not impact your Customer Charge. Typically, a residential customer will consume more gas in winter heating months since temperatures are colder and require more gas use to keep your home warm. Your bill shows a comparison of temperatures for the same period in the previous year.

Energy Efficiency programs can help you save energy and money. Please visit the ETG website for a list and description of Energy Efficiency programs exclusively for ETG customers at https://www.elizabethtowngas.com/residential/energy-savings.

Other Items

Deposit

When you first open your account, you may be assessed a one-time fee that will be reimbursed after 1 full year of timely payments. The deposit is waived for customers who:

Have an excellent credit history with ETG
Provide a letter of excellent credit from another utility company
Serve in the military

Credit (CR)

Credits may appear on your bill and will carry over to your next bill, reducing some of your costs. Credits may be applied due to:

Customer overpayment
Cancelled bill-when an estimated meter reading is corrected and replaced with an actual meter reading
Energy assistance credit

Why Your Bill Changes Month-to-Month

Several factors impact your monthly bill.

Factors you cannot control:

Customer charge – fixed monthly cost for having an active account
Number of days in a month of the billing cycle (you may see fluctuations in your usage when a month has more or less days than the previous month)
Seasonal changes and outdoor temperature affect the use of your heat (when the temperature is colder, we typically use more heat)

Factors you can control:

Number of gas appliances in your home
Lifestyle changes, such as working at home
Practice Energy Efficiency. Check out Energy Efficiency programs exclusively available for ETG customers - elizabethtowngas.com/SaveEnergy

How to control gas usage

Use a smart or programmable thermostat
Fix leaky water faucets (dripping hot water is using energy)
Replace furnace and air conditioning filters (helps keep your equipment running efficiently)
Relocate thermostats away from cold areas (seal areas where drafts are present)
Clean dryer lint traps
Replace older, less energy-efficient appliances with energy-efficient gas appliances. Incentives are available when upgrading to high-efficiency equipment and appliances.
Reduce length of time in the shower and consider washing clothes in cold water
Fix windows that don’t close properly. Replace single-pane windows.
Close fireplace dampers when not in use
Seal drafty areas

Why does my bill appear to be higher after the meter is replaced?

Most times when a meter is replaced, it’s because the meter isn’t functioning properly and may not be accurately recording natural gas usage. If your bill appears to be higher after a meter change, it does not mean you are paying for the new meter. Instead, the new meter is accurately recording the amount of natural gas you are using which is represented on your bill.

What you can do to help reduce your natural gas bill.

Reduce the number of therms you use. Simply put, the less therms you use, the lower your bill. You can trust that we’re helping you save energy and money without sacrificing comfort. Simple things like turning down your thermostat or sealing air leaks and drafts can help. In addition, Energy Efficiency programs, financial incentives, and resources are available to ETG customers. Here's what you can do:

Get instant rebates and discounts on smart thermostats and water-saving fixtures – elizabethtowngas.com/marketplace
Find easy ways to reduce your energy usage with a quick, online assessment - etg.energysavvy.com
Visit ETGsaveenergy.com for information on money-saving Energy Efficiency programs, exclusively for ETG customers:
- Upgrade to high-efficiency gas heating and water heating equipment with 0% APR financing for 7 years through our On-Bill Repayment Program (OBRP) and up to $1,500 in rebates
- Quick Home Energy Checkup (QHEC) - FREE In-home Assessment
- Home Performance with ENERGY STAR® - whole house comprehensive energy efficiency assessment
- Replace your washer and/or gas dryer with eligible ENERGY STAR appliances and receive up to $300 in rebates
  Low/Moderate Income – additional incentives available
Visit elizabethtowngas.com/conserve for simple energy saving tips

Trouble paying your natural gas bill?

Financial assistance is available. Utility Bill Assistance programs are available to help you pay and manage your energy bills. For resources and online applications, visit Energy Assistance.

Visit My Account or speak with a Customer Service Representative about a Payment Arrangement to pay your balance over time.

Natural gas is still your best value.

Rest assured, natural gas is still the most affordable residential energy source according to the Department of Energy’s recently-released 2022 residential energy forecast and natural gas continues to be significantly less expensive than other energy sources.

**Natural Gas vs. Oil**
Natural Gas Furnace (95%)	Oil (80%)	Savings $	Savings %
$1,001	$2,566	$1,565	61%

**Natural Gas vs. Propane**
Natural Gas Furnace (95%)	Propane (80%)	Savings $	Savings %
$1,001	$2,842	$1,841	65%

**Natural Gas vs. Electric**
Natural Gas Furnace (95%)	Electric (Resistance)	Savings $	Savings %
$1,001	$3,119	$2,118	68%

**Natural Gas vs. Electric Heat Pump**
Natural Gas Furnace (95%)	Electric 6.8 HSPF	Savings $	Savings %
$1,001	$1,528	$527	34%

Existing homes converting from other fuels to natural gas.
Assuming standard efficiency for 12-18 years old existing equipment and high efficiency for new natural gas equipment.

Average annual savings when switching from alternative heat sources and assume use of high efficiency natural gas equipment. Actual savings vary based on usage and energy source. Comparisons based on October 2022 EIA oil and propane data, July 2022 EIA electric data, and ETG’s October 2022 natural gas rate. Availability of natural gas is not guaranteed and contingent upon household proximity to natural gas main.

We appreciate our customers and the community and will continue to deliver value with safe, reliable, affordable natural gas.