# What Does Billing Factor Mean On My Natural Gas Bill?

The billing factor is used to convert the amount of gas into therms, which are units of heat energy. This computation ensures that all consumers are charged the same amount for the gas’s heating value.

## What is a billing factor, and how does it work?

For billing purposes, the billing factor is a number or adjustment that is used to convert the amount of gas registered on the meter to therms. The billing factor compensates for changes in delivery pressure, altitude, and meter calibration by adjusting the amount of gas detected. The Billing Factor could include a meter calibration correction factor. The calibration factor, when applied, corrects slight meter registration mistakes, effectively lowering the recorded registration by 2%. If this meter calibration adjustment factor is applied to your bill account, a notification will appear at the top of your bill. The BTU factor is used to adjust the amount of gas measured to reflect the amount of heat it contains.

## What is the most prevalent reason for a high gas bill?

The entire amount of gas used to heat the water is divided by the total amount of water consumed to compute your gas bill. This method determines the quantity of gas necessary to heat each litre of water in mega joules, which is referred to as the common factor.

## How are natural gas bills calculated?

The cubic foot is a popular unit of measurement for natural gas, and you’ll be paid in thousands of cubic feet (MCF) or hundreds of cubic feet (CCF). You could also be charged by the therm, which is roughly equivalent to a CCF or 100 cubic feet. The utility sets a meter between the incoming electric power or gas lines and the point of distribution at the house to monitor how much electricity or gas you consume.

The force of moving gas in the pipe drives a gas meter, which turns quicker as the flow increases. The pointer on the next higher value dial advances one number for every complete round of the dial with the lower value.

When reading a gas meter, read and write down the numbers from left to right on the dials (opposite of an electric meter). It’s vital to observe that the hands of adjacent dials on both types of meters turn in opposite directions.

## What is the definition of a therm factor?

A billing period’s therm factor is equal to the average of the weekly heating values for that billing period. To compute the therm factor for a billing period, multiply the weekly heating values provided for any day within the billing period by the number of heating values, then divide by 1000.

Formula:

Billing for noncore gas accounts is done on a month-to-month basis. Most calendar months will only have four heating values; however, some months (such as April, July, October, and December in 2007) will have five heating values that must be averaged to produce the applicable therm factor for a calendar month billing period.

The formula is the same, only there are five heating values in this case:

We utilize the heating values from 2/26, 2/19, 2/12, and 2/5 to determine the therm factor for the billing period 2/1 to 2/28 for BTU area code B02.

The therm factor is calculated as follows: ((1,017 + 1,018 + 1,017) / 4) / 1000 = 1.017

## How is the billing factor determined?

A meter with an upstream transformer’s billing factor is the quotient determined from the PT/CT ratio and transformation ratio. In order to establish the actual consumption or demand for billing, the quotient is multiplied by the recorded consumption or demand.

## What is the significance of the pressure factor in a gas bill?

Your gas usage is calculated using the pressure factor, which is also provided by your local distribution provider. The pressure and speed with which natural gas is delivered to your home or business will vary depending on environmental conditions such as temperature and the device that will be using the gas.

### Multiply this number by the price-per-kWh.

You may have a daily standing fee or a predetermined price for the first number of units utilized, followed by a lesser price for any additional units used after that.

## What exactly is the BTU factor?

BTU Factor: The amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit is measured in British Thermal Units (BTUs). Therms are thermal energy units equal to 100,000 BTU and are the unit of measurement for natural gas consumption.

## How can I save money on gas?

If your boiler is more than 12-15 years old, costs a lot of money to run, and breaks down frequently, it’s time to replace it. ‘Heating our homes accounts for over half of our annual household energy expenses,’ explains Victoria Billings, Director of Marketing at Worcester Bosch. That’s why, in order to save money on your gas bill and help the environment, you’ll need an efficient and cost-effective heating system.

‘While a new boiler can be costly (up to \$1,000), it’s a wise investment because a modern one will drastically reduce your bills,’ explains Andrew Collinge. Vaillant, a heating firm, agrees, claiming a 30% reduction in rates for households who purchase one of its energy-efficient boilers.

‘All modern boilers are condensing boilers with a big heat exchanger,’ says the author. As a result, more heat is recovered and colder gases are delivered up the flue, increasing efficiency,’ explains Andrew Collinge. ‘To put it another way, new A-rated boilers (any boiler with an efficiency of over 90%) can provide 90p or more of heat for every 1 invested.’

‘In previous models, though, this is 60-80p for every one.’ It’s also good for the environment to replace your old boiler. Because a more efficient boiler uses less fuel to heat your home, it reduces your carbon footprint,’ he explains.

### Turn down the water temperature

You should be able to lower the temperature of the hot water that comes out of your faucets and shower heads using the controls on your boiler. You’re likely squandering gas and money if the water that comes out of it is too hot to touch, so lower it down a few degrees until you achieve the ideal temperature.

### Invest in a smart thermostat

A smart thermostat allows you to control your heating system from anywhere in the world using an app on your phone or tablet. Some will store your daily routine and figure out how to make the most of it, while others will adjust their settings based on the weather. ‘Some smart thermostats can also alter the temperature of your boiler output to ensure that it’s constantly running at peak efficiency,’ Brian says.

## How much therms of gas do you use on a monthly basis?

What is the price of natural gas per therm? Does the price of natural gas per therm differ by state? Natural gas prices per therm differ depending on geography and other factors. The average price of natural gas is \$0.95 per therm, or \$9.52 per thousand cubic feet. 100 cubic feet of natural gas equals one therm. Natural gas is used by the majority of households to heat their homes, heat their water, and power their appliances. Natural gas is a clean-burning fossil fuel that emits less pollutants than coal or petroleum-based goods. However, being a natural resource, we should make every effort to conserve natural gas. Natural gas costs fell last year, in 2020, but they now appear to be rising again. Continue reading to find out more about natural gas and its current prices1.

### What is natural gas?

Natural energy is created deep beneath the earth’s surface. Natural gas is colorless and odorless in its natural state. Natural gas, on the other hand, is rarely used in its purest form. Normally, natural gas is treated and transformed. Many by-products are removed during the process. By-products can be recycled for a variety of purposes. Natural gas is most typically utilized to generate power and heat. Natural gas is widely used in residential, commercial, and industrial settings since it is one of the cleanest fossil fuels available. Demand largely determines natural gas pricing. Demand may fluctuate due to seasonal fluctuations.

### What is a therm?

“Therm is the unit of measurement for your natural gas utilization over time,” according to the EIA. The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is measured in British Thermal Units (BTUs). Therms are used in most natural gas bills, however one therm is equal to around 100,000 BTUs. The price per therm is determined by your location, provider, and demand. The amount of gas you consume can be influenced by the weather, appliances, and other factors2.

### How much is a unit of natural gas?

Natural gas prices vary depending on where you live and the season. Natural gas prices frequently rise in tandem with rising demand. There is no motivation to consume more than your neighbor because it is a natural resource. Natural gas is often priced in dollars per MMBtu, dollars per cubic foot, or dollars per therm in the United States. In January 2020, the national average for natural gas was \$9.52 per thousand cubic feet3. Natural gas must be transported and stored, which is why pricing is affected by location. Natural gas may be more expensive in places like Hawaii.

### Why is natural gas so cheap?

Natural gas is inexpensive when compared to other energy sources. Natural gas prices were historically low in 2020, but they began to rise in the second half of the year. Natural gas is abundant in the United States, which keeps prices low. We now have access to more resources, such as natural gas, thanks to technological advancements. Prices are expected to drop even further as we are able to produce more natural gas5. Furthermore, as alternative energy sources grow more prominent, natural gas demand may decline in the next years. Lower prices should result from the combination of increasing supply and decreased demand6.

### Is fixed-price natural gas worth it?

Fixed-price natural gas has a higher average price, but it avoids seasonal price spikes. Fixed-price natural gas will almost certainly save you money in the long run. Furthermore, your monthly electricity payment should be easier to handle. The cost of variable-rate programs varies depending on market rates.

### Will natural gas prices go up in 2021?

After falling in 2020, natural gas prices are likely to rise slightly in 2021. A substantial chunk of our economy was forced to shut down due to the current pandemic. Natural gas prices may have fallen due to a temporary dip in demand. As our economy reopens, demand begins to climb again, which could explain why prices are rising. As previously said, technological advancements are expected to lower natural gas prices in the long run. However, it is likely that these forecasts will not be realized for another 20 years or more.

### Is natural gas cheaper than electricity?

Natural gas is frequently less expensive than electricity on average. While gas appliances are more expensive, they may save you money in the long run. Because gas is usually less expensive, a gas furnace should be less expensive to run. Electric furnaces, on the other hand, may be quieter and safer. If you reside in a location where power outages are often, gas appliances may be a better option. Even if there is a power outage, gas appliances should continue to function. To make an informed decision on whether to use gas or electric equipment, you should consult a specialist. Gas and electricity both have advantages and disadvantages.

### How much does natural gas cost monthly?

Natural gas is used to heat the house, warm the water, and in many cases, to cook in many houses. As a result, residential gas expenses vary based on usage, location, and other factors. In the United States, the average natural gas bill is \$63.34. Gas may be more expensive in other states, such as Alaska, Hawaii, or Maine. Alternatively, petrol may be substantially cheaper in other states such as New Mexico, Idaho, and Nevada. If you’re attempting to save money on natural gas, look over your bill. While monthly utility bills can be perplexing, a section dedicated to usage should be included. You can use this part to keep track of your monthly usage and check whether any new measures help you save resources7.

### What are gas procurement charges?

The fuel required to power activities must be sourced and transported by gas firms. Acquisition and transportation fees charged by utility companies could be classified as procurement charges. Procurement costs can fluctuate from month to month. They typically change on the first business day of every month. More costs than simple usage can be found on gas bills. The majority of gas bills have a number of different components, including procurement expenses, transportation costs, surcharges, and so on8. The impact of wholesale gas markets on procurement prices is the greatest9.

### How many therms does the average household use?

Households often use less therms in the summer than they do in the winter. In the winter, residents in California use an average of 40 therms per month, while in the summer, they use 16 therms each month10. The average yearly natural gas usage per home in Georgia is approximately 717 therms11. Natural gas use is primarily used for heating. Natural gas will most certainly be used more in locations with colder weather. Aside from location, the size of your home can have a big impact on how much energy you consume. Some argue that because some families do not use natural gas, averages may not be as accurate as we want.

### Who has the cheapest natural gas?

Utah has been declared the winner! Utah offers some of the cheapest natural gas prices, with costs as low as \$9.12 per 1,000 cubic feet12. Montana is the runner-up, but Utah is still roughly 8% less expensive. Idaho, New Mexico, Minnesota, New Jersey, Colorado, Wisconsin, Nevada, and Oregon are among the states having some of the lowest natural gas prices.

### How is natural gas billed?

Although most gas bills are similar, the charges may differ. The majority of gas bills will show your usage. Other charges, such as procurement and fees, may also be shown. Some homes may assume they are efficient since their gas bills are quite low. When you look at your gas bill, though, you can find even more methods to save.

### How is natural gas price calculated?

Natural gas prices are usually determined by supply and demand. However, as previously stated, the way natural gas prices are determined might vary depending on geography and other factors. Your gas usage is most often expressed in therms on your utility statement. Appliances or furnaces, on the other hand, may specify needed usage in other units, such as BTU. You may need to make some conversions13 if you’re attempting to figure out how much your heater or appliances cost each month. These guidelines should assist you in calculating natural gas expenses.

A therm is equal to 100,000 BTUs.

A therm is equal to 100 cubic feet of gas.

A thousand cubic feet (MCF) equals 1,028,000 British thermal units (BTUs).

Natural gas has a BTU value of 1,028 per cubic foot.

### Conclusion

Experts believe that gas prices will continue to be low as technology advances. There’s a chance they’ll even fall.

The Clean Natural Gas plan from Inspire gives you peace of mind at a fixed price. Furthermore, when you choose Inspire as your natural gas supplier, there are no sign-up or cancellation fees, no installations, and no service interruptions. Based on parameters such as your home’s energy use patterns, we’ll calculate a personalized price for your natural gas supply.

Once you’ve joined, you’ll have peace of mind knowing that carbon emissions from your home’s natural gas consumption are being offset, and you’re doing your part to help the environment.

Your gas will continue to be delivered to you by your local utility provider when you switch to Inspire’s Clean Natural Gas plan. Inspire will take over as your natural gas supplier, and you will see “Inspire identified as your natural gas supplier” on your utility account after you begin service. We’ll start buying carbon offsets on your behalf to offset the carbon emissions caused by your home’s natural gas usage.

Our Clean Natural Gas plan is currently available in Ohio for eligible home and small business customers, with more locations coming soon.

It’s never been simpler to cut your net carbon emissions and help the environment. Visit Inspire’s Clean Natural Gas plan page or call Inspire’s helpful Member Experience team at (866) 403-2620 to learn more about offsetting your natural gas consumption.

We also offer access to clean, renewable energy for one flat monthly price if you’re looking for sustainable choices for your home’s electricity supply needs. Begin today, and the world will thank you.