Customer or fixed charge
This can cover costs that exist even when gas use is low, such as maintaining service availability, meter-related work and system operations.
Natural gas bill guide
What is the gas delivery charge on your bill?
The delivery portion of a natural-gas bill is different from the gas supply or commodity price. It generally pays for the utility system and services that move gas to your property, and it may contain both fixed and usage-based components.
Review My BillSupply and delivery are different parts of the bill
A natural-gas statement can separate the cost of the gas itself from the cost of delivering it. The supply or commodity portion relates to the gas purchased for customers. The delivery portion relates to the pipes, meters, system operation, maintenance and other utility services used to move that gas to the account.
Con Edison, for example, explains its bills as supply, delivery and taxes, while Peoples Gas describes delivery as a combination that can include a customer charge, a volumetric distribution charge and a storage charge. Your utility may use different labels, so always compare the definitions on your own bill and rate schedule.
Common parts of a gas delivery charge
Distribution charge
This is often tied to the amount of gas delivered. If your therm usage rises, a usage-based distribution line can rise with it.
Storage or system charges
Some utilities include storage, infrastructure or other approved components within the delivery section.
Taxes and adjustments
Taxes, riders or adjustments may appear near the delivery section but are not necessarily the same thing as the core delivery rate.
Why the delivery portion can rise
Start by checking whether the delivery charge is partly usage-based. If you used more therms because of colder weather, water heating or appliance use, the distribution portion may increase even when the delivery rate itself did not change. A rate change, approved adjustment or longer billing cycle can also move the total.
If the whole statement increased, compare our high gas bill checklist. If the billing period is longer than usual, see longer billing cycle high bill. If the meter reading was estimated, review estimated meter reading adjustments.
How to compare two gas bills
1. Compare usage
Write down therms or the utility's usage unit for both billing periods.
2. Compare billing days
A longer period can increase both usage and usage-based delivery charges.
3. Separate supply and delivery
Do not treat a higher commodity price as a delivery-rate increase.
4. Check the fixed charge
See whether the customer or service charge changed independently of usage.
5. Look for adjustments
Review riders, credits, storage charges, corrections and other lines that changed.
Questions to ask the utility
- Which part of the delivery charge is fixed and which part depends on usage?
- What rate was applied per therm or usage unit this month?
- Did the delivery rate or any rider change during this billing period?
- Does the delivery total include storage, infrastructure or other adjustments?
- Was my meter reading actual, estimated or corrected?
If the explanation is still unclear, ask the utility to identify the exact tariff or rate schedule behind the line item rather than relying only on the short label printed on the statement.
Source notes
Utility billing structures vary by state and provider. For examples of how utilities describe supply and delivery, see Con Edison's bill explanation and Peoples Gas natural-gas rate guidance.
Frequently asked questions
Is a delivery charge automatically a hidden fee?
No. Delivery is usually a standard regulated part of utility service. The useful question is what components make up the charge and whether the amount matches the applicable rate and usage.
Can I avoid the delivery charge by choosing another gas supplier?
Usually not entirely. In markets where customers can choose a gas supplier, the local utility can still remain responsible for physically delivering the gas and charging for distribution service.
Should I compare dollars or therms first?
Compare both. Therms show consumption, while the dollar total also reflects supply rates, delivery rates, fixed charges, taxes and adjustments.