An Important Message About Your Natural Gas Bill
Reliable and safe natural gas service at a fair price is important to you and to us. We hear you and to keep that high level of service you have come to expect, an increase in your gas rate is necessary. Below are Frequently Asked Questions to help you understand your rate increase.
Didn’t Consolidated just increase gas rates?
Actually, it’s been five years since we increased rates. We have always and will always do what we can to keep our costs reasonably low, and members continue to reap the rewards of sharing ownership in a responsible and responsive cooperative; when we collect more revenue than our costs, you get your share back in the form of capital credits.
While the idea of capital credits and ownership is most often not understood, we can still point out that members should remember getting their “shares” of our margins over the last few years (not necessarily every year, though).
How much will my monthly gas bill go up?
Beginning September 1, 2020 your monthly service charge is increasing $7. Also, the cost of the gas you use will go up by 30 cents per ccf (hundred cubic feet of gas.)
When will the rate increase will take effect?
Your natural gas rate increase takes effect on September 1, and you will see the new rates reflected in your October bill.
What makes up our natural gas rate?
There is a wholesale portion of your bill and a distribution portion. The wholesale portion changes on a monthly basis and only covers getting the gas into our pipelines. The distribution portion of your bill pays for the pipelines, maintenance, support, and operations of the systems we use to get that gas to your homes or businesses.
Why are our rates higher than natural gas in the urban areas?
While the wholesale cost of the product is similar, it is harder and more costly to provide gas service in rural, less densely populated areas, and fewer customers to “chip in” to pay those costs. The costs are relatively the same to build and maintain a natural gas system whether rural or urban, so when you have more homes per mile the cost to serve each user can be much lower.
