Rights & Responsibilities Billing Procedures

Your gas usage is billed monthly based on either actual or estimated meter readings. Typically, your bill includes:

• A basic monthly charge, this is a fixed charge and not associated with monthly usage
• Charges for the quantity of gas used
• The Purchased Gas Adjustment (PGA), this is the cost for gas supply

• State Retail Sales Tax where applicable – A tax is assessed on customer usage by the State of Maryland in the form of sales tax on the bill’s dollar amount. The current rate is 5%. This tax is collected by the company and forwarded to the appropriate jurisdiction. No sales tax is collected on residential accounts.

Purchased Gas Adjustment

The Purchased Gas Adjustment (PGA) was established with the permission of the Maryland Public Service Commission and/or the Delaware Public Service Commission (as applicable to your service area). It allows for the collection or refund of increased or decreased prices that the company must pay its gas suppliers to purchase gas.


Only gas costs are included in the computation of the PGA. These are passed through dollar-for-dollar, with no profit to the company.


Ways to Establish Credit Without a Deposit

Residential Requirements:

A new permanent residential applicant may avoid a deposit by meeting one or more of the following criteria:

• Proof of home ownership at the service premise (e.g., copy of settlement papers)
• Verified by a company representative through local property appraiser records
• Customer is 60 years of age or older (unless previous service history includes payment issues)
• Letter of employment for three or more years on company letterhead
• Acceptable letter of credit from a utility company showing 12 months of good payment history

• Previous customer account with a good payment history

Non-Residential Requirements:


While not always required, nonresidential applicants may establish credit by one of the following:

• Acceptable letter of credit from another utility company with a good payment history over the past 12 months
• Positive credit history with the utility
• Surety bond furnished in an amount equal to the required deposit

Applicants who were previously customers and had service discontinued due to nonpayment or fraudulent use may be required to reestablish credit with a new deposit or other form of credit assurance.