Whether you receive an e-bill through your Peoples e-Account, or a traditional paper bill in the mail, you have probably seen the Summary of Basic Charges section on your statement. This Summary of Charges includes a lot of different pieces, and we know that our customers often have questions about these charges. So we’re here to walk you through it.
The Summary of Basic Charges is more than just a total. Think of it like a receipt, showing a breakdown of where your money is going, and how much was spent on each individual item. All of the charges on your bill fall into one of two categories: Operation Costs or Passthrough Costs. So, what is included in each category?
Passthrough Costs include things like the cost of natural gas itself. We are a natural gas distribution company, which means we only distribute the gas to you. We buy the gas, and then bring it to your home and business. This cost of the gas is a passthrough, meaning what we pay is what you pay. Depending on the area where you live, this passthrough cost is listed on your bill as a “Price to Compare,” “Gas Cost Recovery,” or “Commodity Charge.” But regardless of the name, we never make a profit on these charges. This cost is calculated by measuring how much gas you use in a month.
Another Passthrough Cost is the Capacity Charge, which is the cost of using other pipeline systems to bring the natural gas into the Peoples pipelines. Again, you pay what we pay. We are the connection between you and the gas supplier—sort of like a delivery service bringing a package to your door—but we do not make a profit on your Passthrough Charges.
The other parts of your bill fall into the “Operation Costs” category. Operation Costs help to keep our business running. They allow us to keep our customers safe, research new technology, and employ over 1,200 people throughout Pennsylvania, West Virginia, and Kentucky. The Delivery Charge varies based on how much gas you use per month, while the Monthly Customer Charge stays the same every month. The rates for both of these charges have been approved by your State Regulatory Commission.
We have over 15,000 miles of pipeline across the three states we serve, and the charges that you see on your bill allow us to inspect, repair, and replace those pipelines. By doing so, we’re improving local infrastructure, reducing methane emissions, and protecting the environment and the customers we serve.
If you have any additional questions about the charges on your gas bill, please reach out to us any time. We’re always here to answer your questions—and to make your life better!
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