Office of the Ohio Consumers' Counsel

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Natural Gas

• Natural gas choice
• Community aggregation
• Affinity aggregation
• Understanding your natural gas bill
• Meter reading

For the past several years, customers of Cincinnati Gas and Electric (CG&E), Columbia Gas of Ohio, Dominion East Ohio and Vectren Energy Delivery of Ohio, have had the opportunity to save on energy costs by participating in one of Ohio’s natural gas choice programs. Natural gas choice allows consumers to comparison shop for natural gas just like they would for other goods and services. The local natural gas company continues to deliver natural gas into homes, maintain the underground gas lines, respond to service related problems, read your meter and send you a monthly bill.

To find out which natural gas suppliers have an offer in your area, contact the Office of the Ohio Consumers’ Counsel (OCC) toll free at 1-877-PICKOCC (1-877-742-5622) or visit the natural gas page on the OCC’s website here.

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Community aggregation

Ohio law allows local governments such as cities, townships and counties to pool residents and businesses together as a buying group for the purchase of natural gas. The aggregator may enter into an agreement with a certified natural gas supplier on behalf of all members of the aggregated group. Aggregated groups may possess greater bargaining power than individual consumers, which may result in greater savings or other benefits. Local governments are permitted to use an “opt-out” method, which automatically includes all eligible residents in the buying group unless he or she withdraws from the group or has already chosen an alternative supplier. Local governments may also use an “opt-in” model, where each resident is required to agree to participate in the program before being included in the aggregation pool.

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Affinity aggregation

Affinity aggregation makes group buying power available to associations and other organizations such as churches, schools and membership-based groups. Each group member who wants to participate in the buying pool must join, or “opt in,” to be part of the program.

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Understanding your natural gas bill

When you receive your natural gas bill each month, do you look closely at each item listed or do you just find the amount due and send in your payment? The following information will help you understand the items that are part of your bill.

Natural Gas Measurements

Natural gas can be measured in one of two ways: in hundred cubic feet (Ccf) or thousand cubic feet (Mcf). CG&E, Columbia and Vectren measure in Ccf while Dominion measures in Mcf.

Calculated versus Actual Readings

Natural gas companies can perform either actual or calculated meter readings each billing cycle. There are no industry-standard requirements as to how many actual readings a company must perform each year. However, most companies read meters at least once over a 12-month period. The actual meter reading records the usage amount in order to determine how many cubic feet of natural gas you have used. The company determines a calculated reading by looking at the historical usage for the same month during previous years. You can contact the company to request an actual meter reading. Be sure to check with your utility to determine if there is a cost for this reading.

Fees and Charges

Your bill will typically show three types of charges: the Gas Cost Recovery (GCR) rate, base rate and customer charge. The GCR rate makes up 60 to 70 percent of the total cost of your bill while the base rate covers the other 30 to 40 percent. The GCR rate reflects the actual cost of natural gas purchased by the company. It is important to know that the company is not permitted to make a profit on the cost of natural gas and the Public Utilities Commission of Ohio (PUCO) regulates this rate.

The base rate, which can also appear as a transportation charge, or usage charge, covers all costs associated with the delivery of natural gas to your home. It also includes all taxes and other surcharges.

Part of your base rate may also be shown as a monthly customer or service charge.

Bill Requirements

Natural gas companies are required to list certain information on your monthly bill. Each company must include:

	Company name and address
	A telephone number for the customer to inquire about the bill
	Customer account number
	Beginning and ending dates, as well as the number of days within the service period
	Beginning meter read; ending meter read; total usage
	An indication whether the meter reading is estimated or actual. Companies may not always conduct an actual meter reading. Often an estimation is made based upon usage during previous years. Some companies may allow customers to phone in their own readings as well.
	The due date for payment of the bill in order to keep the account current
	The total charges for the period
	The amount of any late payment, if applicable
	Previous balances, customer credits and total balance
	The current balance of the budget plan amount (if the customer is participating in such a plan)
	The gas cost recovery rate per Mcf or Ccf
	The total cost of gas from the past month. This charge usually includes the total gas cost recovery in dollars and cents, a transportation cost and tax. Some companies will have these charges listed on separate lines on the bill.
	The monthly service or customer charge.

Although I and K are not listed on this particular bill, additional charges and budget plan information are usually located under the account summary.

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Meter reading

It is important to understand natural gas meter readings and how they affect monthly utility bills. By learning how to read your own meter, you can monitor your usage and avoid being overcharged or undercharged by the utility company.

Your natural gas meter resembles a metal box with pipes extending from it. Natural gas meters are located inside the home, usually in the basement or outside the home. The meter’s face has four round clock-like dials with the numbers 0-9 displayed on each one.

1. You can figure out how to read your gas meter by using the following steps: Locate the four dials and read them from left to right. Be aware that the pointer on the first dial of a gas meter circles counterclockwise, the second dial clockwise, the third counterclockwise and the fourth clockwise.
2. Notice the pointer in each dial and write down the number indicated by its position. When the pointer is between two numbers, the reading for the dial is the smaller of the two numbers. For example if the pointer is between two and three, you record two since it is less than three. Determining the number may seem tricky when the pointer is between zero and another number. If the pointer is between nine and zero, you record nine because the zero acts as the number 10. However, in the case where the pointer is between zero and one, you would record zero because it is less than one.
3. If the pointer is directly on a number, that number is the reading. When you cannot tell if a pointer is directly on a number, look at the dial directly to the right. If the pointer on that dial has not passed zero, record the smaller number of the two.

To discover how much natural gas has been used in your home or apartment, pick a date to take a reading of your meter. Then on the same date the next month, read your meter again. Subtract the first reading from the second reading to determine the amount of natural gas that was used during the month. You can monitor your natural gas usage on a daily or weekly basis by taking regular readings.