Natural Gas Cost Per Therm
Energy suppliers must ensure they efficiently use natural gas resources to meet end users’ needs. Natural gas costs per therm vary based on factors such as location, so you’ll need to know how these entities measure usage and bill their customers to determine resource costs.
If you need to provide critical billing data for your clients, rely on RateAcuity for trusted industry insights and resources. Examine the factors that influence billing to keep your customers informed.
What Is a Dekatherm?
Essentially, natural gas consumers purchase heat, so suppliers may adjust their rates based on the heating value of their natural gas. One dekatherm has a natural gas volume and heating value of 910 to 1,026 cubic feet.
Natural gases are approximately 80% methane but may have a slightly different combination of gases. However, some other gases that may get into the gas stream, particularly heavier hydrocarbons, can boost heating value, while others, like noncombustible carbon dioxide, may reduce heating value. Energy suppliers may need to adjust to compensate customers for these variants.
How Is Your Natural Gas Usage Measured, and How Does It Show Up On Bills?
Natural gas usage is measured by the fuel used to heat a certain number of cubic feet on a property. Typically, energy companies will bill consumers by the therm, which is about 100 cubic feet. Suppliers will install a meter between the point of distribution in the house and the incoming gas lines to identify usage rates, but bills may also include procurement charges to cover sourcing and transporting natural gas to consumers.
When consumers look at a natural gas bill, they’ll see three main items listed:
- Delivery charges
- Cost of gas in therms
- Interim rate adjustment
By adding up the total sum of charges and dividing by the therms, they can identify the cost they pay per therm.
Overview of Natural Gas Terminology
Natural gas terminology involves a few key terms necessary to understand utility rates and pricing:
- Therm: Roughly equivalent to 100 cubic feet, this unit is the primary method of measuring natural gas usage for billing purposes.
- Cubic foot: This term refers to a unit of volume equivalent to a cube that is 1 foot long on each side. It’s a measurement for the area powered by natural gas.
- British Thermal Unit (BTU): A BTU is the amount of heat needed to increase one pound of water by one degree Fahrenheit and is equal to almost 100,000 BTUs.
How Are Dekatherms Calculated on Energy Bills?
The dekatherm is essentially a measurement of natural gas’s ability to heat a space over time. A customer’s natural gas usage will show up as dollars per therm or cubic foot on each bill. The total cost reflects the cubic footage requiring energy.
How Can RateAcuity Help You to Compare Gas Utility Rates?
When you partner with RateAcuity, we can help meet your clients’ needs with in-depth data insights. We’ll help you identify key considerations and evaluate consumers’ energy use. Fast, accurate data allows you and your clients to make informed decisions without needing additional time for data collection.
If you’d like more information on our services, reach out to us today.