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Understanding Your Residential Gas Bill

The actual cost of the natural gas makes up more than half of your bill. By state law, utilities can only charge the actual market cost of the gas, including costs to transport the gas. Utilities cannot mark up the cost of natural gas. Fixed charges are about $9 to $15 per month and cover costs for things such as metering, billing, customer service, and other administrative items.

This chart shows a sample gas bill for an average Minnesota residential home during the winter.


Cost of Gas

Natural gas prices drive the amount you pay on both your gas and electric bills because gas is used for some electric generation in Minnesota. Gas is traded at “hubs” across the Nation. Below you can see historic natural gas prices as traded at the Henry Hub, the basis of New York Mercantile Exchange gas market.

Cost of Gas 2023 1

Average Residential Gas Bill

Residential customers often use more gas in the winter to heat their homes. This means that gas bills increase in the winter and decrease in the summer.

AvMoResGasBill2023 1

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