How to Calculate Natural Gas Prices

Written by rebecca mecomber
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How to Calculate Natural Gas Prices
Determine gas consumption and convert into therms or CCFs. (Calculator image by Alhazm Salemi from Fotolia.com)

According to the Energy Information Administration, the number of U.S. households and businesses consuming natural gas for energy use rises every year, with more than 65 million households using natural gas in 2008. Natural gas is pumped via underground pipes and is measured by cubic feet; for every 100 cubic feet consumed (called CCF), the gas meter registers one "click" on the dial.

Energy companies vary when measuring and billing customers; some charge per CCF, and others by "therms." One CCF (100 cubic feet) equals one therm. To determine natural gas prices, you need to know how many therms or cubic feet of gas you consume, and how much it costs per one unit.

Skill level:
Moderate

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Instructions

  1. 1

    Determine the cost of gas per cubic foot unit. For example, some energy companies charge so many dollars per 1 CCF (100 cubic feet).

  2. 2

    Determine your consumption of cubic feet: 25,000, for example. Convert this amount into CCFs; divide 100 (CCF units) by 25,000 (your consumption of cubic feet) for a total of 250 CCFs.

  3. 3

    Multiply the fee charged by the energy company per one CCF (100 cubic feet) from the example. So, if the energy company charged 80p per 1 CCF, multiply 80p times 250 CCFs: £203.1 total for 250 CCFs (or 25,000 cubic feet) consumed.

  1. 1

    Determine the cost of gas per therm. Some energy companies charge a set price per therm.

  2. 2

    Determine your consumption of cubic feet: 25,000, for example. Convert this amount into therms. Remember that one therm equals 100 cubic feet (1 CCF). Therefore, divide one therm (100 cubic feet) into 25,000 (your consumption of cubic feet) for a total of 250 therms.

  3. 3

    Multiply the fee charged by the energy company per one therm. So, if the energy company charged 70p per therm, multiply 70p times 250 therms: £188.5 total for 250 therms consumed.

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