This is a fixed monthly amount that covers certain costs of providing you service, including maintenance and repair of customer lines, depreciation, taxes and customer-related expenses, such as meter reading and billing.
Natural Gas Supply Charge
This relates to the purchase and provision of the natural gas supply or commodity.
Imposed by your local jurisdiction, taxes are collected by Washington Gas and remitted to the appropriate taxing authorities.
This covers the cost of transporting the natural gas through the Washington Gas system to your meter. The monthly Distribution Charge is based on the amount of natural gas you use (stated in therms on your bill).
In addition, this section may list any surcharges applicable to your jurisdiction, such as PROJECTpipes in Washington, D.C., STRIDE in Maryland or All Applicable Riders in Virginia.
Below is a line item explanation of your Distribution Charge:
• DC Customers
• MD Customers
• VA Customers
Purchase Gas Charge (PGC)
If you buy gas from Washington Gas, you will see the abbreviation “PGC” on your bill. 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. Simply put, Washington Gas does not profit from the sale of natural gas.
Energy Supply Company
If you buy gas from an energy supply company, the price should be specified in your contract with the supplier.