Here is an explanation of the terms used on your monthly Minnesota Energy Resources bill:
- Affordability surcharge
- A charge required by state law to fund the gas affordability program,
which provides assistance to low-income customers.
- CCF (100 cubic feet)
- The volume of gas measured by your gas meter.
- Cooling degree days
- A measure of the need for air conditioning (cooling) based on temperature. Cooling
degree days are calculated by subtracting 65 degrees Fahrenheit from the average daily
- Customer charge
- Helps cover the costs of supplying equipment used to serve
customers, issuing bills and providing customer service programs.
- Energy cost adjustment
- The increase or decrease in the cost of fuel from the amount
included in the current rates.
- An estimated reading is based on actual past use, seasonal
trends and weather. Any difference between the estimated reading
and the actual one will be made up the next time the meter
- Gas adjustment rate (PGAC)
- Can be a credit or a charge. Adjusts the base rate for any changes in the cost of
- Gas base rate
- Estimate of the annual cost of gas on a per therm basis.
It includes the cost to contract for adequate pipeline and storage capacity. Annual
estimated costs are spread out evenly over 12 months.
- Gas supply acquisition charge
- The purchase and management of gas supplies for our customers, as well as the
carrying costs of purchasing gas supplies in the summer and storing these gas supplies
- Gas supply service
- The purchase, transportation and storage of gas, as well as the acquisition and
management of gas supplies for our customers; includes "gas supply acquisition service"
and "natural gas costs."
- Heating degree days
- A measure of the need for heating based on temperature. Heating degree days are
calculated by subtracting the average daily temperature from 65 degrees Fahrenheit.
- Late payment charge (LPC)
- Commission authorized charge of 1% per month on unpaid service balances not paid
in full within 20 days following the issuance of the bill.
- Local distribution service
- The safe, reliable transportation of gas across
the Minnesota Energy Resources gas distribution system to customers, including metering, billing and
customer service; includes both "Fixed" and "Volumetric" charges to more accurately match
the actual costs of providing these services. Fixed charges do not vary with your usage;
Volumetric charges will vary with your usage.
- A measurement of the amount of heat energy in natural gas, equal to 100,000 BTUs. A
BTU, or British Thermal Unit, is the quantity of heat required to raise the temperature
of one pound of water by one degree Fahrenheit.