How to Read Your Natural Gas Bill
A gas bill measures usage in therms or CCF instead of kWh, but the underlying structure is the same as an electric bill: a fixed customer charge, a delivery charge that pays for the pipeline network regardless of who supplies your gas, and a gas cost or commodity charge for the fuel itself — which, in many states, you can shop for separately.
Therms and CCF: two ways of measuring the same thing
Gas usage shows up in one of two units depending on your utility. CCF measures gas by volume — 100 cubic feet — while a therm measures the actual heat energy content, adjusted slightly by a "heating value" factor specific to the gas supply in your area. Some utilities bill directly in therms; others meter in CCF and convert to therms (or don't convert at all) on the printed bill. Either way, it's the same underlying gas usage, just expressed differently — worth knowing so a bill from a new address or a new utility doesn't look unfamiliar for no real reason.
Customer charge
Like most electric bills, a gas bill usually starts with a fixed customer charge — a flat fee, often based on the number of days in the billing period, that applies whether you used a lot of gas or almost none. It covers the base cost of having an active account and a meter to read, separate from how much gas actually flowed through it.
Delivery (or transportation) charge
The delivery charge — sometimes called a transportation or distribution charge — pays for the utility's pipeline network: the mains, service lines, meters, and regulators that get gas from the utility's system to your building, plus the maintenance and safety inspections that keep that network running. This charge is typically regulated and stays with your local utility no matter who supplies the actual gas.
Gas cost (commodity) charge
The gas cost charge, sometimes called a commodity charge, reflects the price of the natural gas itself — what the utility (or a third-party supplier, in deregulated markets) paid to procure it. This is the piece that moves most with wholesale market prices and with the season, since gas demand — and therefore price — tends to climb heading into winter heating months. In states where gas is deregulated, this is also the portion you can shop for through a separate supplier, similar to how electric supply works in a deregulated electric market.
Baseline allowances and tiered pricing
Some utilities price gas usage in tiers: a set monthly allowance, called a baseline, priced at a lower rate, with any usage above that allowance billed at a higher rate. This structure is meant to encourage conservation by making it cost more per unit once a household or business uses beyond a typical amount. Not every utility uses this approach, so it's worth checking your own bill or utility's rate schedule rather than assuming — a bill that spikes sharply in a high-usage month could be partly a tiered-rate effect rather than pure usage growth.
Taxes and smaller fees
Below the main charges, expect state and local taxes plus any smaller regulatory fees or riders specific to your utility. Individually these are usually minor, but in a low-usage month — like a mild spring or fall billing period — they can make up a larger share of the total than usual simply because the gas cost and delivery charges shrink while flat fees don't.
Frequently asked questions
What's the difference between a therm and a CCF on a gas bill?
CCF measures 100 cubic feet of gas by volume, while a therm measures the actual heat energy content, adjusted slightly for your local gas supply's heating value. Some utilities bill in therms, others in CCF — either way, the number represents how much gas you used.
Can I shop for a different gas supplier, like I can with electricity?
In many of the same states that deregulated electricity, the gas commodity charge is also shoppable through a third-party supplier, while the local utility continues to handle delivery through its pipeline network regardless of who supplies the gas itself.
What is a baseline or tiered rate on a gas bill?
Some utilities price a set allowance of usage at a lower baseline rate and charge usage above that allowance at a higher rate, an approach meant to encourage conservation. Not every utility uses this structure, so it's worth checking whether yours does.
See this on your own bill
Upload your gas or electric bill and Certo reads it for you — a free bill health score, a plain-English breakdown, and whether your rate is competitive.
Want it tracked automatically every month?
Plus and Pro track bill history, flag rate hikes and unusual usage, and (on Pro) build a custom efficiency checklist and savings tracker — so you're not re-checking this by hand.