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Your Bill Explained

Your Bill Explained

Understanding Your Bill – Useful Terms

Rate Class

Your rate class will be based on the purpose of the property use (Residential/Commercial/Group Metered) and the gas service utilization (To heat/cool the property or for other purposes such as fireplace/water heater/dryer/stove). Distribution rates and other charges are dependent on your rate class.

Residential Service - Service to customers for residential purposes by individual meter in a single-family dwelling, individual apartment, up to three families served by a single meter (one customer) in a multiple family dwelling.

  • Heating and/or Cooling - Where gas is used to supply the principal space heating and/or air-cooling requirements of a dwelling, including any other residential uses. Where gas is used in conjunction with service to commercial or industrial premises, the service shall be classified Commercial and Industrial service.
  • Non-Heating and Non-Cooling - Where gas is not used to supply the principal space heating and/or air-cooling requirements but is used for any other residential purposes.

Commercial Service - This category shall include service to commercial and/or industrial customers, including schools, churches, embassies, rest homes, boarding houses, rooming houses, etc. supplied through one meter or a battery of meters.

  • Heating and/or Cooling - Where gas is used to supply the principal space heating and/or air-cooling requirements, including other commercial and/or industrial uses
  • Non-Heating and Non-Cooling - Where gas is not used to supply the principal space heating and/or air-cooling requirements but is used for any other commercial and industrial purposes. Where gas for a commercial and industrial purpose is used in conjunction with service to residential premises, the service shall be classified Commercial and Industrial Service.

Group Metered Apartments - Service applicable to any multiple-dwelling building or project comprised of four or more dwelling units (apartments) supplied through one meter or a battery of meters.

  • Heating and/or Cooling - Where gas is used to supply the principal space heating and/or air-cooling requirements of the dwellings, including any other uses.
  • Non-Heating and Non-Cooling - Where gas is not used to supply the principal space heating and/or air-cooling requirements but is used for any other purposes.

The Rate Class is located on the top left of the second page.

Meter Reading

To read a meter with dials, please do the following:

  • Starting with the left dial on the row of four (see diagram below), locate the dial hand and record the last number it has passed (taking note of the direction of the arrow on the dial).
  • If the hand is between two numbers, record the lower number. If one hand is directly over a number, record that number. Continuing to the right, follow the same procedure for the three remaining dials.

 Note: Actual readings will be attempted monthly, if an actual read could not be obtained, an estimated read based on historical usage and weather conditions will be utilized.

CCF: A unit of measurement for gas used. One CCF = 100 cubic feet.

How calculated: Current Reading – Previous Reading = Consumption Billed CCF

Therm (TH): For billing purposes, your natural gas usage is expressed in therms. A therm is a measure of the heat energy in natural gas and is approximately equal to the heat content in 100 cubic feet of natural gas, or a Centum Cubic Feet (CCF). Your meter reading (expressed in CCF of natural gas) and an energy content conversion factor determine the total number of therms you use.

How calculated: CCF x Therm Conversion rate = Therm

ccf

Bill Charges

Bill is composed of three sections:

  • Distribution Service - This covers the cost of transporting the natural gas through the Washington Gas system to your meter.
  • Natural Gas Supply Service - This relates to the purchase and provision of the natural gas supply or commodity.
  • Taxes - Imposed by your local jurisdiction, taxes are collected by Washington Gas and remitted to the appropriate taxing authorities.

charges

Distribution Service Charges

Distribution Charge: The "distribution charge" is the amount the Company charges for delivering each therm of purchased gas consumed by the customer. Such charge is a measure of the costs of the Company to provide, maintain and operate a system of underground piping to distribute purchased gas to the service piping located on the customer's property.

How calculated: Therm usage, categorized by different rates, with the first covering up to 45 Therms, the second between 45 and 180 Therms, and the last for usage greater than 180 Therms x distribution rate

System Charge: Covers certain other costs of providing your service, including depreciation of equipment, taxes, maintenance and repair of customer lines, and expenses such as reading and billing. The "system charge" is a measure of the costs of the Company's facilities and other costs that do not vary with the amount of gas the customer consumes.

How calculated: Fixed monthly charge per rate type

STRIDE Surcharge: Customers are subject to the Accelerated Pipe Replacement Plan (STRIDE) Rider in accordance with General Service Provision No. 32. The accelerated pipe replacement plan currently is drawn from the following categories: 1) bare and/or unprotected steel and targeted copper and pre-1975 plastic services; 2) bare unprotected steel mains and targeted unprotected wrapped steel main; 3) vintage mechanically coupled pipe; 4) cast iron main; 5) meter set survey and remediation program; 6) remote control valve installation; 7) DOT transmission/high pressure block valve replacement; 8) riser replacement for DOT transmission and high pressure mainline valves; 9) DOT Transmission and High-Pressure Pipe Replacement; and 10) replacement of Components of DOT Transmission and High-Pressure Pipes to Enable the Use of In-Line Inspection (“ILI”) Tools. STRIDE

How calculated: Fixed monthly charge per rate type

Empower MD Surcharge: In accordance with the Company’s approved EmPOWER Maryland (“EmPOWER”) energy efficiency and conservation programs and cost recovery mechanism, customers shall be subject to an EmPOWER surcharge.

How calculated: Therm x EmPower Rate

Natural Gas Supply Service Charges

• PGC (Purchased Gas Charge): The "purchased gas charge" is the amount the Company charges for each therm of gas consumed by the customer. The gas consumed under this schedule shall be billed an amount per therm representing the average unit cost of purchased gas in accordance with Section 16 of the General Service Provisions. This Purchased Gas Charge (PGC) includes the cost to purchase the natural gas supply, plus the expense of transporting it through the interstate natural gas pipeline system. By regulation, Washington Gas must charge customers what it pays for the natural gas supply they use and cannot profit by increasing the cost of the natural gas supply it sells.

Note: If you buy gas from an energy supply company, the price should be specified in your contract with the supplier.

How calculated: Therm x PGC Rate

 

Tax Charges

Local County Tax: Imposed by your local jurisdiction, taxes are collected by Washington Gas and remitted to the appropriate taxing authorities.

How calculated: Therm x Local Tax Rate

Md Gross Receipts Tax Surcharge:

How calculated: (Distribution cost calculation + System Charge) x Rate

Sales Tax: Sales tax is applicable only to Commercial and Industrial rate class customers.

How calculated: (Total charges – County Tax charge) x Rate


OTHER CHARGES

Late Charges: Charge applied to arrearage invoice balances not paid by the due date. No late payment charge shall be levied on any amounts, including deferred payment installments, paid by the due date, or on amounts in dispute before the Commission.

How calculated: If bills are not paid within twenty days after rendition, except as provided below, a late payment charge will be added equal to one and one-half percent of the unpaid bill and at the end of the first nominal thirty-day billing interval after that, an additional charge of one and one-half percent of any portion of the original amount which remains unpaid, and at the end of the second thirty-day nominal billing interval, an additional charge will be made equal to 2 percent of any portion of the original amount which remains unpaid at that time; however, the total of such charges shall not exceed 5%.

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