PECO’s natural gas bills are made up of two parts – the delivery charge (made up of the distribution and customer charges) and the commodity charge. The delivery charge reflects the cost of moving the natural gas from the interstate pipeline to your meter. Controlled by PECO, this is the portion of the bill that reflects the company’s business costs and profit.
The commodity charge, which makes up a majority of a typical monthly natural gas bill, reflects what we pay for natural gas on the wholesale market. This cost is passed through to you without any mark-up from PECO.
You can view the following graphic to enhance your understanding of natural gas rates:
• A comparison of Natural Gas Chart (pdf) from 2001 to 2008.