What is the purpose of a minimum bill?

 

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

 

America's natural gas system consists of billions of dollars worth of infrastructure from the source of supply to the burner tip.  Elk River Public Utility District’s system alone consists of millions of dollars worth of distribution system.  Some of the fixed costs involved in providing natural gas service are:

 

 

No matter how much natural gas is sold, there are fixed operating costs incurred by the District every month. The minimum bills help 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 © 2009 ERPUD. All rights reserved.
Revised: 07/16/09.