How to read my gas bill

UES' gas rates reflect the cost of providing safe, reliable service to our customers. They also reflect the complexity of that task, with fixed fees, usage-based charges and surcharges that can be difficult to understand. The following summary offers explanations for the terms you'll find on your monthly bill, including links to details posted elsewhere on this website.

Jump to a section:   Delivery Services  |  Gas Supply Charges  |  Energy Efficiency Charges  |  Taxes and Assessments

Delivery Services

UES Bill Sample 1

The charges listed in this section of your bill recover the cost of delivering natural gas to customers. These charges reflect the cost of pipelines, regulator stations, monitoring equipment and other infrastructure; employees and contractors who install, operate and maintain that equipment; and other necessary business expenses.

The Arizona Corporation Commission (ACC) sets rates that divide responsibility for these costs among different types of customers – including residential, commercial and industrial users – based on typical consumption patterns. Our natural gas rates are designed to recover the appropriate portion of these costs from each customer group through a combination of fixed fees and usage-based charges.

Customer Charge

This fixed monthly fee helps cover the cost of maintaining natural gas delivery to your address. This fee does not vary with usage. The charge covers only a small fraction of the costs we incur to serve every customer, regardless of how much natural gas they use.

Delivery (per therm) charge

Consumption is measured in therms — a measurement of the energy provided by the natural gas used by customers.

Acquisition Credit

This temporary credit is applied to the Customer Charge on bills issued from October through March. The savings range from $1.19 per month for residential customers to $27.39 per month for commercial customers with high gas use. The credit provides customers with direct benefits from the August 2014 acquisition of UES’ parent company by Fortis.

Gas Supply Charges

UES Bill Sample 2Gas supply charges recover the cost of natural gas purchased on behalf of customers. This usage-based charge is updated monthly through Purchased Gas Adjustor (PGA) credits and charges that reflect changes in natural gas prices.

Energy Efficiency Charges

UES Bill Sample 3UES is using more renewable power and helping customers save energy. Some of the costs associated with these efforts are recovered through usage-based surcharges approved by the ACC and listed in this section of your bill.

DSM Surcharge

The Demand Side Management (DSM) charge is a monthly, usage-based charge established by the Arizona Corporation Commission (ACC) to pay for cost-effective residential and commercial energy efficiency programs and energy efficiency upgrades to the homes of limited-income customers.


The Lost Fixed Cost Recovery (LFCR) charge partly offsets the revenue UES loses when customers reduce their bills through conservation programs. Without the charge, UES would be unable to recover the full cost of improvements to our natural gas distribution system that serves all customers, regardless of usage.

Taxes and Assessments

UES Bill Sample 4The charges on your bill are subject to government taxes and fees. UES forwards all taxes and fees to the appropriate authorities.

ACC Assessment

This usage-based charge helps fund the Arizona Corporation Commission (ACC), a state government agency led by a five-member panel of elected commissioners who set UES’ gas rates and oversee many aspects of utility operations.

RUCO Assessment

This usage-based charge is applied to the bills of residential customers to help fund the Residential Utility Consumer Office (RUCO), a state agency that represents the interests of residential customers in rate requests and other utility issues addressed by the ACC.

City Franchise Fee

UES has reached formal franchise agreements with several cities that authorize its use of public rights-of-way and address other aspects of operations. These agreements, when approved by voters, may mandate that franchise fees be added to the bills of customers in those respective municipalities.

All proceeds of those fees are forwarded to the respective city governments.

Public Utility Tax

Camp Verde and Sedona charge a Public Utility Tax of 1 percent for customers within their respective boundaries. They also allow franchise fees to offset this tax. All proceeds of this tax are forwarded to the appropriate jurisdictions.

City Sales Tax

UES’ charges for natural gas service are subject to Arizona state sales tax of 5.6 percent as well as any municipal sales tax levied by the city where the customer's address is located. Some cities allow franchise fees to offset this tax or have adopted special sales tax rates for utilities. All sales tax proceeds are forwarded to the respective taxing jurisdiction.

County Sales Tax

These sales taxes were approved by voters and are added to the bills of natural gas customers in respective counties. All sales tax proceeds are forwarded to the respective taxing jurisdiction.

Acquisition Credits

Under terms of Fortis' August 2014 acquisition of UNS Energy Corporation, customers of UES and sister company Tucson Electric Power will receive bill credits totaling $30 million over five years.

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The Purchased Gas Adjustor, or PGA, is a usage-based credit or charge that reflects changes in the costs of natural gas. UES passes along these costs without any markup and earns no profit through the PGA.

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DSM Surcharge

The Demand Side Management, or DSM, charge is a monthly, usage-based charge established by the Arizona Corporation Commission to pay for cost-effective energy efficiency programs.

Read More >

LFCR Charge

The Lost Fixed Cost Recovery, or LFCR, surcharge helps ensure that energy efficiency and renewable power projects don't compromise UES' ability to maintain safe, reliable service. Natural gas and electric customers pay separate LFCR charges.
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