Natural gas rates are made up of three components: the service charge, the delivery charge and the purchased gas cost adjustment (PGA).
The service charge is applied on each metered gas service. This charge covers CFU's costs associated for meter reading, customer services, billing, service calls and meter maintenance. The monthly service charge for residential customers is $14.00 per month.
$1.70 per thousand cubic feet (MCF) is charged to recover the cost of delivering natural gas to homes.
Purchased Gas Cost Charge (PGA)
The Purchased Gas Cost Adjustment (PGA) reflects the cost of the natural gas commodity and its delivery to Cedar Falls. This cost varies each month and is billed directly with no markup. This component of the bill changes each month. If your billed usage occurs both before and after the first of the month, your effective PGA will be calculated for the number of days each PGA was in effect.
How to Calculate Your Natural Gas Costs
If a residence consumed 12.0 MCF during a month when the PGA was $4.00/MCF, the gas bill would be calculated as follows:
|Description ||Charge |
|Service Charge ||$14.00 |
|Delivery Charge - 12.0 MCF @ $1.70/MCF ||$20.40 |
|Purchased Gas Adjustment @ $4.00/MCF ||$48.00 |
|Local Option Tax (1%) ||$.82 |
|Total Cost: ||$83.22 |
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