What is the purpose of a Customer Charge?

 

Whether it is called a “customer charge”, “minimum bill”, “access fee”, or something else, most utility companies ( phone, electricity, water, sewer, cable, etc.) charge some type of monthly fee to help recover fixed costs. 

Some of the fixed costs involved in providing natural gas service are:

·         Interstate pipeline firm capacity “demand” charges.

·         Natural gas storage facility “reservation” charges.

·         Distribution system maintenance.

·         Safety and Inspection programs

·         Customer service.

·         Metering.

·         Billing.

·         Buildings.

·         Facilities, etc.

No matter how much natural gas is sold, there are fixed operating costs incurred by the District every month. The customer charge helps pay for a portion of these fixed costs. If we collected all our required operating revenues based solely on the actual gas consumed during the winter heating months (Nov, Dec, Jan, Feb, Mar) those bills to our customers could be extremely high. By collecting a portion of our required revenue over a period of 12 months, it has less of an economic impact on our customers.

When you are connected to Elk River Public Utility District’s natural gas system you are part of a safe, efficient, dependable distribution system and team of skilled, dedicated employees that are strongly committed to providing you with the best natural gas service possible, 24 hours a day - 7 days a week.

Elk River Public Utility District has been serving the natural gas needs of our customers throughout Coffee and Franklin counties since 1955. We value your business and we look forward to the opportunity to serve you.

 

 

Copyright © 2015 ERPUD. All rights reserved.
Revised: 6/15/2015