The Customer Charge is a fixed monthly fee designed to evenly distribute costs Danville Utilities incurs when providing natural gas service to customers. Examples of charges that are incurred are meter reading, maintaining customer records, capital and maintenance costs and many other general service costs.
What is the Distribution Charge?
The Distribution Charge is the charge per therm of natural gas delivered by Danville Utilities to the customer.
Purchased Gas Adjustment?
The Purchased Gas Adjustment (PGA) is the amount Danville Utilities pays per therm for the natural gas. The PGA fluctuates monthly based on the market price of natural gas. The PGA is a pass-through cost for the purchased natural gas, meaning Danville Utilities does not profit from the PGA. The monthly PGA amount is located in the Billing Factors section on each billing cycle's utility bill.
What is a therm?
Danville Utilities measures natural gas in cubic feet, but converts that measure into “therms” for billing purposes. A therm is defined as the volume of gas needed to generate 100,000 British Thermal Units (Btu's) of heat energy. One Btu is the heat required to raise the temperature of one pound of water one degree Fahrenheit. Ten burning kitchen matches release 10 Btu. One cubic foot of natural gas has about 1,031 Btu.