Understanding your monthly gas bill can be a complex task for many consumers. As well as the standard line items for your usage and service charges, the bill may contain a variety of unfamiliar abbreviations and acronyms. One common acronym is PGA, which stands for ‘Pipeline and Gas Adjustment’. This line item can be deceptive, as it doesn’t necessarily mean an additional cost, and understanding what it is can be beneficial for budgeting. In this blog post, we will provide an overview of what PGA is and how it affects your monthly gas bill.
The ACC also authorized a temporary $0 PGA surcharge in July 2022. From August 1, 2022 to November 30, 2024, it will cost 04150 per therm. This transient surcharge is intended to assist in defraying costs associated with higher wholesale natural gas prices, which increased by more than 200% over the previous two years. Extreme weather conditions have also contributed to historically high natural gas prices.
On your electricity bill, there is a line item called Energy Cost Adjustment (ECA). The sum reflects how much electricity a customer consumes. In the ECA, CFU only charges customers the price of producing or acquiring electricity, with no markup. The ECA changes every month. Your effective ECA will be calculated for the number of days each ECA was in effect if your billed usage occurs both before and after the first of the month.
This item appears on your natural gas bill. The sum represents the price of the natural gas a client consumes. In the PGA, CFU only charges customers the price of natural gas and any associated pipeline fees. The PGA changes each month. Your effective PGA will be determined for the number of days each PGA was in effect if your billed usage occurs both before and after the first of the month.
The variable charges on CFU’s utility bills, like those of many utilities, are based on the market prices for gas and electricity. The Purchased Gas Adjustment (PGA) and the Energy Cost Adjustment (ECA) are those charges on the CFUs bill.
Based on the wholesale prices CFU pays for the energy it provides to customers, the PGA and ECA go up and down. What you need to know about the PGA and ECA on your bill is as follows:
Because we are aware of how crucial affordable energy is for our customers, we approach the purchase of natural gas from multiple angles. We purchase and store natural gas every summer when costs are typically at their lowest. To lessen the impact of unexpected price changes, we also lock in contracts for the guaranteed supply of natural gas at fixed prices. Most of the natural gas that our customers use each winter is provided by these options. However, prolonged cold spells may necessitate the purchase of additional natural gas in order to keep homes and businesses warm throughout our service area.
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FAQ
What does PGA on gas bill mean?
In accordance with Connecticut General Statutes 16-19b, the purchased gas adjustment (PGA) clause is a rate adjustment mechanism that was first introduced in the 1970s. It allows gas companies to pass the cost of gas directly on to their customers.
Why am I being charged so much for gas?
High gas supply rates, older, inefficient appliances, the need to better maintain or service your gas appliances, window and door drafts, heat loss through the attic or chimney, or opportunities to save money can all be blamed for consistently high bills or high bills during the summer when heating costs drop for most households.
What is a gas PPP Surcharge?
The Gas Public Purpose Program (PPP) Surcharge, which is included in your gas bill if you’re a customer, is used to pay for state-mandated gas assistance programs for low-income customers, energy efficiency programs, and public-interest research and development.
Does we energies have a late fee?
If your payment is not received by the due date, it is deemed to be late. When this happens, a late payment charge of 1. The following bill will include 5% of the outstanding balance. Before your energy bill is due, get in touch with us if you have any questions or concerns about your bill.
Reference:
https://www.wecenergygroup.com/home/message/we-energies-cold-wx-impact.htm
https://www.cngc.com/wp-content/uploads/PDFs/Brochures/2019_august/2019_06_04_cngc_what_is_a_pga_optimized.pdf