Fig. 22-1 Sample Natural Gas Rate Tariff.

levels of usage are billed at different unit costs. In this case, the billing unit is 100 cubic feet (Ccf) of natural gas. Ccf is a commonly used volume of gas for billing purposes. Other commonly used billing units are 1,000 cf (Mcf), therm (100,000 Btu), and million Btu (MMBtu). The rate schedule is shown in Figure 22-1. Refer to Chapter 5 for detail on the energy or heat content of natural gas billing units. Assuming that the gas usage for the month was 47,500 Ccf, the bill would be calculated as follows:

The commodity rate is first adjusted to account for the purchased gas adjustment (PGA) and the DSM surcharge. To each rate block, $0.0097 is subtracted to account for the PGA and $0.0020 is added to the commodity rate to account for the DSM surcharge. The resulting net commodity rate is:

Block Ccf Per Ccf

First 10,000

Next 20,000

All Over 30,000


For the first 10,000 Ccf, the charge is: For the next 20,000 Ccf, the charge is: For the final 17,500 Ccf, the charge is: The total commodity charge is: Add the service charge: The total pre-tax utility bill is: Add state and city taxes of 5.8%: Total bill for the month is:

Note that if the customer used no billing month, the bill would have been charge of $80.00, plus the state and city monthly bill of $84.64.

$4,297.00 $8,290.00 $7,040.25 $19,627.25 $80.00 $19,707.25 $1,143.02 $20,850.27

gas during the only the service taxes, for a total

Summer Period* Other Periods

Monthly service charge $71.29 $71.29

Demand charge $10.02/kW $8.53/kW

Energy charge $0.05890/kW $0.05242/kWh

Minimum monthly charge: the customer charge plus $4.57 per kW of the highest billing demand established during the 12 months ending with the current month. Fuel adjustment charge (FAC): Nuclear decommissioning surcharge: State tax: City tax:

'Summer Period is defined as the billing months of June, July, August, and September. All other billing months are defined as "Other Periods."

Fig. 22-2 Sample Electric Rate Tariff.

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