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How to calculate your natural gas bill
Direct Energy, December 5, 2023
4 minute read
How to calculate your natural gas bill
Direct Energy, December 5, 2023
4 minute read
Like all energy sources, natural gas fluctuates in price. But advances in the methods used to extract natural gas have significantly boosted the supply, resulting in what energy experts predict to be a long-lasting trend of low gas prices. Your gas bill might be so low every month that you don’t think twice about your energy use, but if you break down your bill by appliance, you could find opportunities to save even more.
Below we have provided a few helpful tips to better calculate your gas bill. We’ll break down the different types of gas units you might find on a bill, break down which appliances use the most gas and show you a few ways to lower your gas usage.
Virtually all electric companies bill their customers the same way: they measure electricity usage in kilowatt-hours (kWh), multiply that figure by the current kWh rate, add in service fees and charge customers for the total. Natural gas companies are more varied in their approach.
Instead of a universal unit like kWh, different gas utilities use different units to measure gas use. Your gas company likely uses one of the following:
If you’re not sure which unit your gas company uses, just check your latest bill. This is also a good opportunity to check the price per unit and compare it to your last several bills to get an idea of how the price fluctuates, and by how much.
If there’s anything on your monthly bill that you don’t understand, visit your gas utility’s website. Most gas companies offer a glossary of terms or a guide to help you understand your bill. It’s important to get this information from your specific utility because of the way gas companies vary in their use of terms.
A home can function just fine without a single gas appliance, and many do. But because gas is such an efficient fuel for heat-producing appliances, the typical U.S. home has a gas furnace at minimum. Other appliances that may run on gas include your water heater, oven, range, dryer, pool heater, outdoor lamps and fireplace equipment.
Each one of these gas appliances has a BTU rating, which tells you the number of BTUs it consumes per hour. If you have the original documentation for a gas appliance, you’ll find the BTU rating in there.
On appliances that are easy to examine, like your water heater, you may also find the rating printed on a label. But since these labels may be hard to find on things like your oven or gas fireplace, you can also find this information by searching online with a model number or the full product name.
Once you know the BTU ratings of your appliances, you can estimate how much your gas bill will be affected by determining how much it costs to run each appliance per hour. But first, you’ll need to convert your gas company’s billing unit into BTUs.
If the price per unit of gas on your bill is already measured in BTUs, you can skip this step.
Here are the conversions for other units into BTUS:
Let’s say you have a furnace with a BTU rating of 100,000 and your gas bill is measured in MCFs. If one MCF costs $9.00:
Using this method, figuring out the cost per hour of using your gas appliances is fairly simple. But as you try and estimate your gas bill, you may find that things start to get tricky. Here are some of the variables that can affect the accuracy of your back-of-the-envelope calculations:
If calculating your gas bill inspires you to control your costs, there are a few things you can do. The obvious strategy is to simply use less gas: set the thermostat a little lower in the winter, take shorter showers and use the microwave a little more often.
Space heating accounts for a large share of the typical gas bill, so anything you can do to help your home retain heat will help lower costs. Upgrading insulation, installing multi-pane windows and sealing drafts are great ways to do this.
It’s also important to keep your gas appliances well-maintained and to replace them when they’re nearing the end of their useful lives. When that time comes, shop around for gas-efficient replacements, and don’t forget to check the BTU ratings.
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