Cost of Natural Gas
Price tied to demand and economy
Natural gas is a commodity, and its price is constantly changing, reflecting current market conditions. The prices we pay are tied to the national demand and economy. That means factors such as weather in the entire country, not just here, and the amount of natural gas in storage plays a role in setting the market price.Purchasing Strategy
Texas Gas Service calculates what it paid to purchase natural gas for its customers and expresses this, without markup, on the bill as the cost of natural gas. The cost of natural gas fluctuates each month with market conditions.
You may view the latest cost of gas amounts for our service areas through Texas here.
Texas Gas Service does not have any control over the market price of natural gas, but a systematic approach to purchasing natural gas ensures that our customers have a safe, reliable and secure supply at the most reasonable prices we can obtain. This includes:
- Securing contracts from diverse sources of supply through a competitive bidding process.
- Using a combination of different practices, such as bidding and hedging a financial tool that puts a cap on the price the company pays for its natural gas, helps protect customers from increases that may otherwise occur.
The per-Mcf (thousand cubic feet of natural gas) charge for the fuel you use is an average of all of these contract prices, and reflects what Texas Gas Service actually pays for the natural gas. Texas Gas Service makes no profit on the sale of natural gas. We earn our return from delivering natural gas through charges for service and delivery, and these rates are regulated by cities (for customers in incorporated areas) and the Texas Railroad Commission (for customers in unincorporated areas).
Securitization Filing
The February 2021 Winter Storm Uri significantly impacted Texans. Like most utilities, Texas Gas Service experienced unusually high natural gas demand and a significant increase in natural gas market prices during the storm.
Knowing the high cost of gas caused by Winter Storm Uri would make our customer bills significantly more than usual, we worked to find a solution to minimize your monthly impact.
The Railroad Commission of Texas has approved a securitization mechanism developed to allow the collection of those extraordinary costs from Winter Storm Uri over several years, thereby lessening the impact on customers’ monthly bills.
Beginning, September 29. 2023, Residential customers will see a volumetric charge of $1.18 per Mcf, varying slightly based on the pressure of the system, included in the Cost of Gas line item on your billing statements. This will average approximately $4.13 monthly based on usage. Below, you'll find a table detailing the pressure bases across our service area.
