What do the charges that appear on my bill mean?
Your bill is probably divided into four main categories as follows:
Cost of Service – This is WTG’s rate as established in the appropriate tariff for your state. This is a volumetric charge, which means that the total amount of the charge will depend upon the amount of gas used within that billing cycle. The rate itself remains constant, and will not change unless a new tariff is filed with the appropriate regulatory commission. This charge, along with the Customer Charge, represents the recovery of certain operating expenses, taxes and profits.
Cost of Gas – Unlike Cost of Service, this volumetric charge has a variable rate which will fluctuate from month to month depending upon the actual cost of natural gas. This figure represents the actual recoverable cost incurred by WTG in order to obtain and deliver your gas to you.
Customer Charge – This component is not based on the volume of gas consumed. It is a flat charge, and it will appear on every bill regardless of consumption. It can also be thought of as a minimum monthly charge.
Rate Case Surcharge – This is a temporary charge which will be added to bills for 26 billing periods, beginning with bills generated after 12/10/04. The purpose of this charge is to cover a portion of the legal expenses and fees incurred by all parties during the WTG rate case.
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