Natural gas is an important part of our everyday lives and as your utility provider, Metropolitan Utilities District understands you may have questions about your gas bill and fluctuating gas prices.
As the video above says, your gas bill is a combination of variable and fixed costs.
Variable “pass-through” costs
M.U.D. purchases supplies on the natural gas market, which are affected by supply and demand.
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Production, national storage on pipelines and weather impacts the overall cost of natural gas.
- Cold weather increases demand for natural gas in the winter as does warm weather during the summer as natural gas is also used to produce close to 40% of electricity in the U.S.
These elements can change often, leading to variations in the cost of gas on your monthly bill.
Fixed costs
M.U.D. oversees the pricing for operating our gas system. We are proud to say the rate for these fees have not changed since 2017. They include:
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Service charge covers costs for administration, such as meter reading, billing and collections.
- Gas infrastructure replacement charge to replace older gas mains in conjunction with the city’s combined sewer overflow project.
In addition, we help limit costs with our own gas storage and production facilities (liquefied natural gas and propane) and pre-paid contracts. This allows M.U.D. to buy gas at a fixed discount compared to market prices and supplement our supply in the very coldest times of the year.
The benefits were never more evident than during last year’s polar vortex. In February 2021, District-owned storage facilities provided more than 30% of gas used by customers over a six-day period. This on-site storage saved our customer-owners more than $100 million, as gas did not have to be purchased on the spot market during record price spikes.
How does this look on my bill?
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Variable Costs: The first portion of your gas bill is for the cost of the gas itself, called the gas supply charge. (See costs in the red box below). The price for each unit of gas you use, called a therm, is driven by market prices. This is the portion of your bill that has been impacted this heating season.
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Fixed Costs: The second portion of your natural gas bill is the gas delivery charge. Customers pay the delivery charge on each unit of natural gas that they receive from M.U.D. It includes the service charge and gas infrastructure replacement charge. These charges have not changed.
Sample bill:
How can I manage my bill?
Enroll in budget billing – We offer a budget payment plan that spreads your average utility usage across 12 monthly installments to avoid bill fluctuations. You may join the plan any time of the year.
Reach out to Customer Service - If you are facing financial hardships, please contact Customer Service at 402.554.6666 to discuss your utility account. We are committed to working with you to discuss payment arrangements and provide information on utility assistance funds.
Apply for utility assistance programs – Assistance is available to income-qualifying customers. You can apply for support through state-based agencies and M.U.D.’s Home Fund. Visit mudomaha.com/homefund for more information.
Reduce energy use and participate in gas appliance rebates – Check out the winter tips page for cost-effective ways you can reduce usage in your home. M.U.D. also offers rebates when you purchase natural gas dryers, ranges and other energy-efficient gas appliances. Visit our rebates page for details.
Did You Know?
M.U.D.'s monthly residential gas bills ranked ninth lowest among 40 major U.S. utilities surveyed for the 2022 Memphis Light, Gas and Water Utility Rate Survey.