Have you ever wondered what all the charges on your monthly bill are for? What about specific terminology used on your bill? The following is a list of explanations for the regulated charges on your bill.

Basic Service Charge/Customer Charge:

This is a flat monthly fee representing some of the fixed costs that go into making gas available at your home of business, regardless of your usage, the time of year or market prices.

Billing Factor:

The billing factor is used to convert the amount of gas into units of heat energy, which are called therms. This calculation ensures that all customers are charged equally for the heating value of the gas they use.

Gas Usage:

This represents the cost per therm of gas you use. These rates are set by the Arizona Corporation Commission after we examine all of the company's costs of providing service. A portion of this rate reflects what the Commission determined was the cost of purchasing gas at the time the rate was set.

Rate Adjustment:

This is a surcharge that covers costs associated with certain residential conservation and low-income programs. The ACC limits how much the surcharge can be adjusted up or down each month.

Monthly Gas Cost Adjustment:

While the rate adjustment deals with past costs, the monthly gas cost adjustment adjusts up or down to reflect the difference between current supplier prices and the gas usage rate.

Purchased Gas Adjustor:

The PGA cost reflects the difference between the base cost of gas (already built into the gas company's gas usage rates) and the company's actual cost of the natural gas commodity. It is a mathematical calculation that factors the actual cost of natural gas on a 12-month rolling average. Click here for more information about PGA surcharges.

Rule R14-2-303A  of the Arizona Administrative Code states that the utility company may obtain specific minimum information from you prior to establishing new service. Here are some examples:

• The name or names of each person requesting service
• The address or location and telephone number
• The billing address or location and telephone number, if different from above
• Address where service was previously provided
• The purpose for which you are requesting service (how you plan to use the gas, i.e. heating, fireplace, grill or pool heater, etc. or a combination of planned uses)
• Indication of whether you are the owner, tenant of or agent for the premises
• Date that you would like service

You do not have to give your social security number to establish service. However, if the company is not able to retrieve sufficient credit information without your social security number, a deposit may be required.

Yes, but not always. Deposits are not required if you meet certain conditions outlined in the Arizona Administrative Code Rule R14-2-303B1. If you are unable to meet those conditions, a deposit may be required. Likewise, if you are delinquent in the payment of 3 or more bills within a 12-consecutive month period or have been disconnected during the last 12 months, the utility can require a deposit. See R14-2-303B for more information.

Yes. Rule R14-2-303B6 of the Arizona Administrative Code states that the amount of a residential customer's deposit shall not exceed two times your estimated average bill. Non-residential or business customer deposits shall not exceed two and one-half times the estimated average bill.

Your utility deposit will normally be refunded to you after 12 consecutive months of payments on time, or when you discontinue service.

Yes. The utility company may require you to post a deposit if you have been late paying your bill three or more times within a 12-consecutive-month period or if you have been disconnected during the last 12 months. See R-14-2-303B5.

The rules require utilities to bill you monthly. Meter readings are to be taken for periods not less than 25 days and not more than 35 days. See R-14-2-310A1 .

Your bill is due and payable within ten calendar days from the date the bill was rendered. If you fail to pay your bill within this time frame, your bill will be considered past due. See Rule R14-2-310C1.

The Arizona Corporation Commission sets rates that provide the company a fair rate of return while balancing the needs of ratepayers. Rate cases are lengthy processes that begin with a company's application stating what they would like the new rate to be along with supporting testimony as to why the increase is justified. Then the Commission staff and other interested parties begin examining and auditing all of the costs associated with providing service in Arizona. Rate cases typically involve months of sworn testimony, audits and examinations to ensure that the basis for the rate is legal and justified. Ultimately, the Commissioners vote on the rates in public Open Meetings.

Yes, there are certain conditions under which the utility can disconnect you. Rule R14-2-311 of the Arizona Administrative Code states that after proper notice, the utility company may disconnect your service if you are in violation of any of the utility's tariffs, or for reasons such as:

• Failure to pay a delinquent bill.
• Failure to meet or maintain your deposit.
• Failure to provide the utility company reasonable access to its equipment and property.
• Or when you break a written contract for service between you and the utility company.

In addition, a utility company may disconnect service without notice for any of the following reasons:

• The existence of an obvious hazard to the safety or health of the consumer or the general population.
• The utility has evidence of meter tampering or fraud.

In some cases, yes. The rules allow a utility company to offer to a qualified customer, prior to termination, a deferred payment plan. You would need to contact your utility company to see if you qualify. Utilities are not required to offer deferred payment plans but many do.

This depends on the circumstances. If there are obvious safety hazards, gas service can be terminated immediately. If the utility has evidence of meter tampering or fraud, they can cut your service without notice. Generally, other circumstances require at least five days' written notice prior to the termination date. See R14-2-311E.

Though not an Arizona Corporation Commission regulation, it is the policy of many gas companies not to disconnect service on weekends and banking holidays, unless there is a hazardous situation.

If you are faced with a hardship and cannot pay your bill, contact your gas company as soon as possible by calling the number on your bill. Advise them of your situation. They may work with you in offering a payment plan that you can afford. This is one of those times when a good payment history can really work in your favor.

There are several local and statewide programs designed to help low-income individuals or people enduring a specific financial hardship. For more information, click here.

The Utility Repair Replacement and Deposit Program (URRD) provides financial assistance on utility deposits in crisis situations. Call the Arizona Department of Economic Security toll free on 1-800-582-5706 for information on eligibility requirements and information as to the closest social service agency near you that can assist you in the application process.

The gas company is required to read your meter every month. There are certain situations during which estimates can be used according to R14-2-310A2. Estimates are based on your usage during the same month of the prior year and your usage during the preceding month. The next bill containing an actual read will adjust for any over or under estimation from the previous month. Below is information about your gas meter.

Gas meters are the only means of measuring how much gas you use. It's useful to know how to read them. That way you can make sure meter readers do their job correctly. In those cases when a meter reader cannot get in to read your meter and your bill is based on an estimated reading, you will be able to check the utility's estimate to make sure it is in line with what you actually used. If it is not, you can have your bill adjusted accordingly. The next bill containing an actual read will adjust for any usage over or under the estimate.

To read your gas meter, follow these easy steps:

1. Face the meter and read the dials from left to right. Please note that each dial turns in the direction opposite the dial next to it. There should be small arrows indicating the direction of motion.
2. Record the numbers for each dial following these rules:
3. When the hand on the dial is between two numbers, always record the smaller number. If the hand is on or very close to a number, record the smaller of the two numbers. For example: If the dial is between 0 and 1 and moving toward the 1, record the 0 because it has not passed 1. If the dial is between 0 and 9 and moving towards the 0, the correct reading is 9.
4. Your consumption can be determined by subtracting your previous reading from your present reading. This will give you the volume of gas used in hundreds of cubic feet.

Contact your utility company. There are several ways to verify the accuracy of a meter. A gas meter can be used in Arizona only if it is a type approved by the American National Standards Institute code. To ensure that only accurate meters are used in the State of Arizona, the Commission:

1. Verifies the accuracy of utility meter-testing devices to standards certified by the National Bureau of Standards.
2. Monitors utility plans for the routine maintenance and replacement of meters, which meet the requirements of the code for gas metering.
3. Ensures that each utility files an annual report, including surveys of the results of the meter maintenance and testing program for that year.

Yes, click here to learn about the complaint process.

You can always call the Arizona Corporation Commission and speak with a representative of our Consumer Services Section to find out more information about the gas company's proposed rate increase. Your comments become part of the data that the Commissioners review prior to making their decision. Our staff can also assist you or your community with procedures for filing petitions, arranging for a public comment session or providing information on becoming an official party to the case (called "intervention").

Click here for a Public Utilities Comments Form

Click here for an Intervention Guideline Form

When you pay your gas bill, you are paying for the gas you use, plus the costs of transporting it and delivering it safely to your home or workplace. Natural gas is traded on the commodity markets and prices cycle from highs to lows like other commodities such as oil, coal or gold. To help even out the natural highs and lows in gas prices, while also sending a price signal that prices are lower or higher, the Arizona Corporation Commission permits companies to use a cost recovery mechanism called the Purchased Gas Adjustor or PGA.

The PGA mechanism adjusts monthly to reflect changes in Gas Company's average cost of natural gas over the previous 12 months. The PGA cost reflects the difference between the base cost of gas (already built into the gas company's gas usage rates) and the company's actual cost of the natural gas commodity and subsequent delivery of the commodity to Arizona natural gas utilities. If there is a large change in natural gas prices, the company may apply a temporary surcharge or credit pursuant to parameters approved by the Commission. The Commission monitors each gas company's PGA bank balance to ensure that the company is properly accounting for its natural gas costs. Gas procurement activities by Arizona natural gas utilities are typically also reviewed in general rate proceedings before the Commission.

It is important to note that natural gas utilities are not allowed to make a profit on the cost of natural gas. You pay the natural gas utility for the fuel you use on a dollar-for-dollar basis. The gas company earns a rate of return based on the costs, other than the commodity cost, of delivering gas to customers. The cost of putting the pipe in the ground, maintaining the meters, customer service, having crews available to respond at a moment's notice to an emergency, training and other expenses. These other expenses are examined during a rate case.

Gas Usage:

This represents the cost per therm of gas you use. These rates are set by the Arizona Corporation Commission after we examine all the company's costs of providing service. A customer's meter measures the volume of gas in cubic feet, which is then converted into therms, a measure of heat content, via an established set of calculations.

Basic Service Charge or Delivery Charge:

This is a flat monthly fee representing some of the fixed costs that go into making gas available at your home or business, regardless of your usage, the time of year or market prices.

Rate Adjustment:

This is a surcharge that covers costs associated with certain residential conservation and low-income, and infrastructure and other programs. The ACC limits how much the surcharge can be adjusted up or down each month.

Monthly Gas Cost or Purchased Gas Adjustor Rate:

This reflects the average cost of gas over the previous 12 months as calculated using the Commission approved purchase gas adjustor.

PGA Surcharge/Credit:

This is a temporary surcharge or credit per therm to reflect movement in the cost of natural gas paid by the utility that is not fully captured in the monthly gas cost/purchased gas adjustor rate. These generally occur when there is a significant increase or decrease in the cost of natural gas.