Your natural gas bill is made up of several line-item charges. Understanding the different components of your Peoples Gas bill empowers you to better manage your household budget. Many of the charges reflect the work it takes to safely deliver natural gas to your home, while others fluctuate based on market conditions. Here’s a quick guide that breaks down the major components of your Peoples Gas bill, so you can better understand what you’re paying for and why.
Customer Charge: The Cost of Service
Every bill includes a fixed monthly Customer Charge, which covers the basic cost of providing natural gas service to your home, no matter the amount of gas used during that month. This fee cannot be adjusted without approval from the Florida Public Service Commission (FPSC).
Distribution Charge: Delivering Gas Safely and Reliably
The Distribution Charge represents a group of operational costs related to delivering natural gas. It includes:
- Base distribution rate (a fixed FPSC‑approved amount)
- Energy conservation program funding
- Legacy pipeline replacement expenses
- Other infrastructure costs
Part of this charge is fixed, while the rest adjusts annually. The total is calculated based on how much gas you use.
Purchased Gas Adjustment (PGA): What the Natural Gas Actually Costs
The PGA is the cost Peoples Gas pays to purchase natural gas on your behalf. This charge:
- Reflects wholesale market prices
- Can fluctuate month-to-month
- Includes no markup (Peoples Gas does not profit from the PGA)
- Operates within an FPSC‑approved price range set each fall
Your bill’s PGA line item represents the cost of natural gas multiplied by the number of therms you used during the month.
Taxes and Local Fees
Your bill also includes mandatory pass‑through charges such as:
- Florida Gross Receipts Tax
- Local taxes and municipal fees
These amounts are collected by the utility but go directly to government agencies without any markup.
Other Possible Charges
Depending on your account status or participation in various programs, your bill may occasionally include:
- Past‑due balances
- Transferred amounts
- Deposits
- Service initiation fees
Resources to help
We understand that customers may be facing unexpected financial hardships, and we are here to help. While you may have used more natural gas than normal during the recent record-setting sustained cold weather, the increased cost of natural gas supply is what is primarily impacting your bill.
View a list of organizations and resources that offer support:
- Learn more about our Share program that helps customers pay energy bills
- We offer flexible payment arrangements to those who qualify
- Our Budget Billing program takes the seasonal highs and lows out of natural gas bills, helping customers manage costs and maintain budgets with predictable monthly payments
- Due Date Plus assists residential customers on a fixed income or whose Social Security, retirement, disability or other support payment is received on a date that doesn’t coincide with their utility bill due date
Peoples Gas offer tools to help you manage energy costs:
- Free residential online energy audits and onsite energy audits for commercial customers
- Appliance calculators
- Energy-saving tips
- Residential and commercial cash-back rebates help with energy-efficient appliance upgrades