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Natural Gas Prices

At Atmos Energy, ensuring we have a reliable supply for all customers, every day, is our top priority. To do that, we have to acquire natural gas from many sources throughout the year. Your bill, then, reflects a weighted average of each of the sources (including costs to move the natural gas from the wells to our system). This entire process is regulated, helping assure your natural gas is reliable and fairly priced.

Atmos Energy purchases natural gas year 'round from many suppliers. Only reliable, proven resources are used. The gas must be delivered to Atmos Energy for re-delivery to you on even the coldest day. Waiting until winter to buy gas on the "spot" market is very risky. Suppliers may have committed their natural gas to other buyers or middlemen by the time winter arrives. Thus, Regulators encourage Atmos Energy to fill storage and "lock-in" prices in warmer months to assure supply and take advantage of (usually) lower prices.

What affects my natural gas bill?

Whether your bill is $30 or $300, Atmos Energy charges about the same amount each month for delivering your natural gas. Residential customers pay, on average, between 15 percent and 20 percent of their winter gas bills for our distribution service. Most customers also are charged from 5 percent to 10 percent for state or local taxes and franchise fees assessed by their city or county.

The largest portion of your bill is the cost of the natural gas that you use. Typically, that amount appears on your bill as Purchased Gas Adjustment, Gas Cost Adjustment or Gas Cost Recovery. We buy natural gas on commodity markets at wholesale prices. We pass on the cost of the gas to all our customers on a dollar-for-dollar basis and do not mark up the price of gas or make a profit on it.

We store natural gas in underground facilities and contract for future gas deliveries. Our gas storage and supply contracts, known as hedging, provide about half of the gas supply that our customers use each winter. Hedging helps ensure that we will have sufficient fuel to meet peak winter demands. It also helps keep your gas cost as economical as possible.

Atmos Energy works to keep natural gas costs low, but we do not set gas prices. Because natural gas is traded on commodity markets, its price reacts quickly to events like higher oil prices, colder weather and hurricanes that affect offshore gas production.

Additional Resources

Understanding Your Atmos Energy Bill
Gas Rates & Tariffs
Customer Service