How Gas rates are determined
Natural gas rates are made up of two primary charges:
- Gas delivery service, which The Gas Company provides – the “delivery” (or “transmission”) charge; and,
- The cost of the natural gas itself — which is reflected in the “procurement” charge.
Many people believe that The Natural Gas Company produces natural gas, but we don’t. For our residential and smaller business customers, we buy natural gas from producers and marketers at the best possible prices on the open market.
The wholesale gas prices we pay are based on market supply and demand. They’re not marked up by The Natural Gas Company, and are shown on your monthly bill as the “commodity charge.”
The Gas Company’s delivery service charge covers the costs of transporting natural gas through our pipeline system.
Monthly Gas rates vary based on monthly gas prices
Since 1999, the cost of natural gas that customers pay in their rates is based on the monthly price of gas and averaged storage cost instead of a forecasted annual price. This allows rates to more closely follow current natural gas market prices.
With monthly pricing, gas rates are based upon a 30-day cost of natural gas market prices. This gives customers a better picture of the current price of natural gas, and means they no longer have to wait for annual adjustments to their bills to make up for differences between the 12-month forecast price and the actual price paid by The Natural Gas Company on a monthly basis.
Does The Gas Company benefit from higher gas prices?
We do not produce natural gas; energy production companies produce natural gas. The Gas Company just delivers natural gas to its customers.
Important New Fumigation Regulations
As always, The Natural Gas Company is committed to serving you. The following information will help us help you make the process of fumigating your home or business a little easier.
A field representative from The Natural Gas Company must shut off and turn on gas service before and after fumigation jobs. Fumigation contractors are no longer authorized to perform these services. We will provide all shut-off and turn-on gas services at no cost to you.
- Gas service shut-off and turn-on orders can be scheduled by contacting us at 642-5635.
- You or your fumigation contractor must call 2 business days prior to the service closure. Your fumigation contractor will provide the information you will need when scheduling your service order. Make sure to inform the Customer Service Representative that the gas service closure is for a tented fumigation job.
- You must schedule service restoration with The Natural Gas Company. Advance notice of one business day is required. We will attempt to set up an appointment with a four-hour time frame (to be determined by the current schedule availability).
- Service cannot be restored on the same day the tent is removed. Overnight aeration is required in all cases.
- You must provide The Natural Gas Company with certification from your contractor that it is safe to re-enter the building. This is called a “Certification for Re-Entry”.
The Natural Gas Company will inspect and adjust all appliances for safety and efficiency as part of the restore service.
Paris Henry County Public Utility District has been dedicated to providing safe and reliable energy for over 60 years. We have a strong safety record and work hard to maintain it throughout our natural gas distribution pipelines and other facilities. Keep the information below handy so we can help keep your job site safe.
Call (811) 48 Hours Ahead — Before You Dig
Mechanical damage by excavating or demolition is the most frequent cause of pipeline damage and failures. Whether you’re planning to build a major development, installing a mail box or just landscaping your personal property – protect your safety and the safety of those around you by notifying TENNESSEE ONE CALL (811) at least two business days prior to excavation. TN ONE CALL will contact us, as well as other local utilities, to mark the location of all utility-owned lines for free. This will allow you to begin your project with the assurance that our pipelines will be protected, and your safety will not be compromised. Visit www.tnonecall.com for more information.
Watch for Pipeline Signs
In the course of your work, you might encounter our pipeline markers. Pipeline markers identify the general area where our natural gas pipelines run and show our name and phone number. However, it’s still important to call TN ONE CALL (811) before you dig. Markers indicate the general, but not exact, location of a pipeline. Not all pipelines follow a straight path between two markers and the markers don’t indicate how deep the lines are buried.
While leaks on natural gas pipelines are rare, it’s important to know the following signs of a leak:
- Dirt or water being thrown in the air,
- Dead or dying vegetation (in an otherwise moist area) over or near pipeline areas,
- Fire coming from the ground or appearing to burn above the ground,
- A roaring, blowing or hissing sound near a pipeline,
- The distinct odor of natural gas.
If you Damage A Pipeline . . .
If you damage a pipeline or suspect a natural gas leak, turn off and abandon any motorized equipment you may be operating, quickly leave the area, and from a safe place, call The Gas Company at 731-642-5635 or the Fire Department 9-1-1.
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