Factors on Your Gas Bill

Thermal Factor

The thermal factor will be increased or decreased to reflect the changes in the heat content of the gas delivered to the City. The City of Charlottesville purchases gas based on the heat content, not on the volume (this is similar to purchasing regular versus premium gasoline). You multiply the consumption from the meter by the thermal factor to get adjusted gas consumption to calculate your bill. You use this adjusted consumption to calculate your bill using the City of Charlottesville rate table. The adjusted consumption is also used to calculate the amount for the purchased gas adjustment.

Purchased Gas Adjustment (P.G.A.)

P.G.A. stands for purchased gas adjustment. This reflects the increases or decreases in the cost of wholesale gas supplied to the City. If the P.G.A. is $0.30 per mcf, then the City of Charlottesville paid $0.30 more per 1,000 cubic feet then the City’s base rate, which is established as of July 1 each year. If the P.G.A. is $-0.30 per mcf, then the City of Charlottesville paid $0.30 less per 1000 cubic feet than the City’s base rate. You use the adjusted consumption you calculated with the thermal factor to calculate the P.G.A.

Utility Taxes

Water is taxed at 10% of the water bill unless your water bill amount is over $3,000. The tax for a bill amounts up to $3,000 is 10%, and the rest of the bill amount is taxed at 4%. There are no taxes on sewer charges. The taxes on Gas customers vary depending on location and consumption. For an explanation of your gas tax, please call Utility Billing at 434-970-3211.

Payment in Lieu of Taxes (PILOT)

The PILOT is a payment from the utilities to the City’s General Fund. The payment represents the taxes the utilities would pay the City if they were a private company. The PILOT is an expense of the utilities and included in the rates you pay. The PILOT formula for water and wastewater is 6% of prior year budgeted revenues from sales. The PILOT formula for gas is 23% of previous year budgeted expenses less cost of purchasing gas.