When your utility bill arrives, do you routinely submit the amount next to the dollar sign, or do you take the time to actually read the bill? Unfortunately, many homeowners don't understand how to interpret their bills. In order to help you start saving money each month, we've put together this quick crash course on learning how to read a utility bill (in this case from your gas supplier).
Vocabulary
The first step to understanding your utility bill is to learn the lingo. Here are a few terms that you should be familiar with:
- BTU – The British Thermal Unit is among the most common ways that your energy (for both electricity and gas) consumption will be measured.
- CCF/MCF – Some gas companies will measure your usage through the cubic feet of gas your home consumed during a given period. CCF stands for 100 cubic feet, whereas MCF represents 1,000 cubic feet of gas used.
- Baseline allowance – Most utility companies come up with an "allowance" for energy consumption based upon what they have determined is the minimum amount of electricity or gas that a home will need to meet its basic needs. Those who do not surpass the baseline allowance will be charged at the lowest rates, whereas those who exceed the limit will pay at increasingly higher intervals or "tiers."
Application
Once you're familiar with utility bill terminology, you can apply it to your everyday life and save money. Start by comparing your average energy usage against the baseline allowance. If you repeatedly exceed the limit, consider ways to cut back on your energy consumption. In some cases, a programmable thermostat or zoned climate control system can help reduce spending. You may also consider asking your HVAC contractor to do an energy audit that may reveal problems with inadequate insulation, air infiltration or inefficient heating and cooling equipment. When upgrading your HVAC systems, compare each model's annual BTU output (shown on the EnergyGuide label) with your baseline allowance for maximum savings.
For more tips on whole-home energy savings, contact the professionals at Hartman Brothers Heating & Air Conditioning. We have been taking care of Fort Wayne area residents for over 50 years.
Our goal is to help educate our customers in New Haven, Indiana and surrounding Fort Wayne area about energy and home comfort issues (specific to HVAC systems). For more information about Utility Bills and other HVAC topics, download our free Home Comfort Resource guide.