Natural gas companies provide the essential energy used by millions of households for heating, cooking, and powering appliances. Understanding how these companies operate is the first step toward managing your home energy costs and ensuring your household remains safe. Whether you are moving into a new home or looking to switch providers, knowing what to look for in a natural gas company can save you time and money.
This guide provides a straightforward look at how natural gas utilities work, how to set up your service, and how to handle emergencies. By the end of this article, you will have a clear understanding of your rights as a consumer and the best practices for maintaining a safe natural gas connection.
What Does a Natural Gas Company Do?
A natural gas company is responsible for the delivery of natural gas from main pipelines to your home. In most regions, these companies are divided into two categories: local distribution companies (LDCs) and retail suppliers. Understanding the difference is important for managing your account.
Local Distribution Companies (Utilities): These are the companies that own and maintain the physical infrastructure, such as the pipes and meters in your neighborhood. They are responsible for responding to gas leaks and ensuring the gas reaches your home safely. You usually do not have a choice in which LDC serves your area.
Retail Suppliers: In states with deregulated energy markets, you may be able to choose a separate company to purchase the actual gas from. The supplier buys the gas on the wholesale market, and the utility company delivers it to you. This allows consumers to shop for better rates or green energy options.
How to Find Your Local Natural Gas Provider
If you are moving to a new area, finding your natural gas provider is usually a simple process. Most regions are served by a single utility company that has been granted the right to operate in that specific territory.
- Check with your landlord or Realtor: They will know which utility serves the specific address.
- Search by zip code: Many state utility commissions provide online tools where you can enter your zip code to find authorized providers.
- Look at previous bills: If you have access to the property, look for a sticker on the gas meter or a leftover bill from the previous occupant.
- Contact local government: Your city or county clerk’s office can typically tell you which company manages the local gas lines.
Steps to Set Up a New Gas Service
Once you have identified your natural gas company, you will need to establish an account. It is best to do this at least two weeks before you move in to ensure the gas is turned on by your move-in date.
To set up a new service, follow these steps:
- Contact the customer service department: Most companies allow you to start service via their website or a phone call.
- Provide personal information: You will need to provide your full name, contact information, and the service address.
- Verification of identity: Most companies require a Social Security number or a government-issued ID to perform a credit check.
- Pay a security deposit: If you are a new customer or have a limited credit history, the company may require an upfront deposit.
- Schedule a technician visit: If the gas is currently turned off, a technician may need to visit the property to turn the valve and inspect the meter.
Understanding Your Natural Gas Bill
Natural gas bills can be confusing because they include various charges and units of measurement. Most companies measure gas in CCF (one hundred cubic feet) or MCF (one thousand cubic feet). Some may also use Therms, which measure the actual energy content of the gas.
A typical bill is broken down into several parts:
- Supply Charge: This is the cost of the actual natural gas consumed. This price fluctuates based on market demand.
- Delivery Charge: This fee goes to the utility company for maintaining the pipes and delivering the gas to your door.
- Customer Charge: A fixed monthly fee that covers administrative costs, such as billing and meter reading.
- Taxes and Surcharges: Local and state taxes applied to energy usage.
To keep your bills low, consider signing up for “Budget Billing.” This program averages your annual usage into equal monthly payments, preventing high spikes during cold winter months.
Natural Gas Safety: What You Need to Know
Safety is the most important aspect of dealing with a natural gas company. While natural gas is a safe and reliable fuel, leaks can be dangerous. Natural gas is naturally odorless, so companies add a chemical called mercaptan that gives it a distinct “rotten egg” smell.
If you smell gas or suspect a leak, follow these immediate steps:
Stop what you are doing. Do not turn lights on or off, use a telephone, or light a match. Even a tiny spark can ignite the gas.
Leave the area immediately. Get everyone out of the house and move a safe distance away from the property.
Call for help. Once you are safely away, call your natural gas company’s emergency line or 911. Do not use your phone inside the building where you smell gas.
Do not return. Wait for a professional technician or emergency responder to tell you it is safe to re-enter the building.
How to Choose a Different Gas Supplier
In regions where the energy market is deregulated, you have the option to choose who supplies your gas. While the local utility will still deliver the gas and handle repairs, the price you pay for the gas itself can vary between suppliers.
When comparing suppliers, look at the following factors:
Fixed vs. Variable Rates: A fixed rate stays the same for the length of your contract, providing price stability. A variable rate changes monthly based on market conditions, which could save you money when prices are low but cost more when demand is high.
Contract Length: Look for terms ranging from 6 months to 3 years. Be aware of early cancellation fees if you decide to switch before the contract ends.
Incentives: Some suppliers offer rewards programs, smart thermostat discounts, or “green gas” options that offset carbon emissions. Always read the fine print to ensure the incentives outweigh any potential increase in the supply rate.
Maintenance and Responsibility
It is important to know which parts of the gas system are your responsibility and which belong to the company. Generally, the natural gas company is responsible for the main lines in the street and the gas meter itself.
The homeowner is responsible for all gas pipes that run from the meter into the house, as well as the connectors to appliances like stoves, water heaters, and furnaces. If a pipe inside your home develops a leak, you must hire a licensed plumber or HVAC professional to fix it, as the gas company generally only handles repairs up to the meter.
To keep your system running efficiently, have your gas appliances inspected annually by a professional. This ensures they are burning fuel cleanly and that exhaust vents are clear of obstructions.
Conclusion
Managing your relationship with your natural gas company does not have to be complicated. By understanding the difference between your utility and your supplier, knowing how to read your bill, and prioritizing safety, you can ensure your home remains comfortable and efficient. Always remember to call your utility company immediately if you suspect a leak, and consider shopping for rates if you live in a deregulated area.
For more tips on managing your home utilities and saving on energy costs, explore our other helpful articles on home maintenance and household budgeting at SearchAndHelp.com.