Fairbanks Natural Gas - Calculate your bill

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How is Natural Gas Measured?
Natural gas is delivered to your home through a network of underground pipes. The piping comes out of the ground at the service riser and connects to the gas meter. FNG uses the gas meter to measure the amount of natural gas used by the customer. Residential and smaller commercial buildings have meters attached to the building. Larger commercial buildings have meters that sit on ground level.

The meter measures the volume of gas by counting the number of times a set volume passes through the meter. Each click of the dial represents 100 cubic feet, also called a CCF. To provide an example, an average home in Fairbanks may use 250 CCF or 25,000 cubic feet of gas in a typical January, when natural gas is used for heating only.

On or around the last day of the month, an FNG operator reads the gas meter. The current month's read is subtracted from the prior month's read. From this calculation, FNG determine's how many CCF has been used between the two reads or billing cycle.

Applying the 250 CCF common usage stated above, we can calculate the cost to heat the home. Using the Residential Rate, currently $2.123 per CCF, the monthly bill would be:

250 CCF x $2.123 = $530.75*
*Additional tax and meter charges are added to the final bill. This calculation assumes 100% effeciency (new gas models range between 80%-97%).

The heating industry calculates units of energy in British Thermal Units or BTUs.

BTU = the heat required to raise the temperature of one pound of water 1 F°.
BTU = approximately the heat in one wooden match.

Here are some BTU comparisons:
1 cubic foot of natural gas = 1,015 BTU*
1 gallon of #2 fuel oil = 132,000 BTU**
1 gallon of propane = 91,700 BTU
1 kW of electricity = 3,413 BTU
1 cord white birch (1 yr seasoned) = 20.3 million BTU

* The national average is 1,000 BTU/ft^3. FNG gas has 1,015 BTU/ft^3 because of processes unique to FNG.
** National averages range between 135,000-140,000 BTU/gal. Because of extreme cold temperatures, Fairbanks consumers use a blend of #1 and #2 heating fuels.

Many customers are interested in how natural gas costs compares to other sources of energy such as heating oil, propane or electricity. Listed below are few of the energy sources available in Fairbanks and their associated costs.

Energy Costs in Fairbanks*:
Natural Gas = $2.123 per hundred cubic feet
(Equivalent cost to #2 Heating Oil is $2.80 per gallon - calculation below )

#2 Heating Oil = $2.81 per gallon
Propane = $2.84 per gallon
Electricity = $0.14026 per kWH
Wood = $150 per cord
* Natural Gas: FNG tariff states $2.123 per 100 cubic feet for residential customers - 2/07.
#2 Heating Oil: Average #2 Home Heating Oil for 500 gallon delivery. FNSB Fall Community Research Quarterly - 10/07.
Propane: Based on residential home heating delivered price in 10/07.
Electricity: GVEA residential rate 10/07.
Wood: White birch seasoned 1 year cut, split and delivered 10/07.

The energy and fuel delivered to homes and businesses come in differing units, such as cubic feet, gallons or kilowatts. To fairly and more accurately compare them, the units are broken down into comparable units of heat, such as a BTU. To find the cost per BTU of natural gas we simply divide the cost per cubic foot by the BTUs in a cubic foot of gas:

= $0.02123/cubic foot
1,015 BTU/cubic foot

= $0.00002091 / BTU
= $20.91 / million BTU of Natural Gas

Do the same for heating oil and others:
$2.81/gallon
132,000 BTUs/gallon

= $0.00002128 / BTU
= $21.28 / million BTU of Heating Oil

Propane = $28.24 / million BTU
Electricity = $28.83 / million BTU
White Birch = $7.39 / million BTU

Natural gas can now be directly compared to other fuels, such as #2 heating oil. Take the computed cost per BTU of natural gas and multiply this number by the number of BTUs in a gallon of heating oil:

$0.00002091/BTU x 132,000 BTU/gallon
= $2.76 per gallon equivalent

WHAT DOES THIS MEAN?

Natural gas costs less when heating oil is greater than $2.76 per gallon (residential).

Based on a BTU comparison and current oil prices, natural gas is very competitive to heating oil. If you are interested in current residential or commercial rates or have questions regarding the figures above, please call our office at 452-7111.

According to the American Gas Association (AGA) the definition of a Heating Degree Day is:

"A measure of the coldness of the weather experienced, based on the extent to which the daily mean temperature falls below a reference temperature, usually 65 degrees F."

For example: If the high temperature on December 9 was +13 F° and the low was -4 F°, than the average daily temperature was +5 F°. The difference between +65 F° and +5 F° is 60 F° giving us 60 heating degree days.

FNG uses heating degree days to gauge how warm or cold a certain billing cycle, month, season or year has been. Depending on how warm you keep your home or building, you can compare your fuel usage to seasonal averages or other comparisons. The average annual heating degrees for Fairbanks is 13,980 heating degree days. FNG maintains the historical records of the heating degree days and are available at the office.


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