Understanding My Residential Bill

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.

1. Conservation Incentive Program - This program removes the link between utility profits and the quantity of natural gas sold.

2. 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.

3. 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.

4. 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.

5. Remediation Adjustment Clause - A rate that covers the costs of remediating former manufactured gas plants.

6. 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.

7. 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.

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.

• 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.
 

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.

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

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

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.