How much does gas cost? Average costs by state

How much will my energy bills cost in 2022?

For more information on how much your energy bills could increase when the cap increases again in October, use our energy calculator.

Right now, analysts are predicting a 51% hike for average use in October. This follows the 54% increase that came into effect in April 2022. 

Our calculator shows you how a 51% increase in October will affect your bills. Simply input how much you typically pay per month on your current tariff. Our tool will estimate how your bills could be affected for the rest of the year.

Normally, the best way to tackle rising energy prices is to switch to a cheaper deal. But amid the energy crisis, many suppliers have raised the costs of their tariffs. This means there aren’t really any cheap deals to be found. 

Some suppliers have recently started to offer some fixed rates to their customers that are higher than the current cap. For some people, switching to a fixed rate tariff now could mean your bills increase between now and October, but that you could save or at least break even by April 2023. But it’s a gamble. We don’t know yet how much the cap will actually rise in October. 

If you are struggling to pay your energy bills (opens in new tab), speak to your provider in the first instance and see if they can help. 

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What Does It Cost To Get Online, Watch Cable TV Or Make A Phone Call?

Your phone service, internet connection, cable TV service, garbage collection and recycling pick-ups are all utilities too. When estimating how much you’ll spend on utilities each month, you need to also consider these additional costs.

Consider cable or pay TV. Leichtman Research Group reported in October 2018 that about 78% of U.S. households with a TV subscribe to some form of pay TV service. Leichtman also reported that subscribers spent an average of about $107 a month on pay TV services. That’s a slight jump of 1% from a year earlier.

How much are households paying for internet service? In 2018, personal finance site CreditDonkey said the average internet bill in the United States was $66.17 a month.

Electricity The Cost of Powering Your Home

Average Electricity Bill: $65.33 – $88.10

Almost every appliance in your home is going to be using electricity at some point in time, which is why it’s important to know exactly how you’re being charged for your power consumption.

Your electricity consumption is going to be measured in kilowatt hours (kwh), which is essentially a measure of how much power a device uses over time.

Currently, the average energy cost in the US is $0.133/kwh, which is higher than the previous year but prices are projected to fall within the coming months.

Since everyone uses different appliances at different rates, it can be pretty hard to estimate average energy usage, but here are a few constants…

Calculating Power Usage

Determining exactly how much electricity you’re using can be tricky, but there are a few constants you can rely on to give you a baseline.

Here’s the average cost of using some necessary household devices based on data from Duke Energy:

Appliance Energy Usage Cost
Ceiling Fan 0.075 kwh/hr $0.01/hr
Energy Star Refrigerator 43.0 kwh/month $5.72/month
Dishwasher 1.0 – 2.17 kwh/load $0.13 – $0.29/load
Laundry (Cold Wash, Cold Rinse) 0.3 kwh/load $0.04
Water Heater 390 – 500 kwh/month $51.87 – $66.50/month
TV (40″ – 49″ LCD) 0.15 kwh/hr $0.02/hr
Computer (Desktop) 0.06 – 0.25 kwh/hr $0.01 – $0.03 kwh/hr
Computer Monitor (17″ LCD) 0.04 kwh/hr $0.01 kwh/hr

Still, there’s one major factor to your electric bill that requires special consideration…

Cable The Expense You Can Play Around With

Average Cable Bill: $0 – $100 (depending on plan)

Here’s where things get interesting.

Yes, we recognize having cable TV access isn’t a necessity, but it’s definitely a quality-of-life choice that most people find to be well worth the cost.

But don’t worry about not having access to entertainment and information, because there are a plethora of great options for audio/visual content available at many price points.

Digital Antenna:

Digital Antenna:

By far the cheapest option, as long as you’re within range of a local broadcaster, digital antennas allow you to watch a handful of television stations (typically including ABC, NBC, FOX, and CBS) for free.

Average Price: $0

Cable Subscription:

Here you’ll see fewer options, depending on where you live, but all companies are required to offer basic cable packages along with additional channels and bundles with internet and phone service.

Average Price: $100/month

Streaming Television:

Recently, many companies have sprung up offering streaming television through the internet, offering customers an alternative to paying whatever their local cable company feels like charging.

Average Price: $25 – $40/month

Dedicated Streaming Services:

And if you’re more into watching things strictly for entertainment, there are plenty of streaming video services that offer a variety of content that appeal to almost every niche from film buffs, to classic television, comedies, and horror.

Average Price: $8 – $15/month (per service)

How Much is a Typical Natural Gas Bill?

What’s typical for one homeowner’s gas bill might seem astronomically high for another. A really high gas bill could be related to a much higher consumption or maybe there was a rate increase. What else could be the culprit for that higher bill?

Look at all the appliances that use natural gas in the home and assess the monthly use. Drying more clothes? That could increase the bill. Using more hot water could be a culprit, too. Even cooking more meals at home may bump consumption. A common cause for higher gas bills is using more heat during the winter; homeowners could try nudging down the thermostat to help lower consumption.

Winterize your home

Since colder months put the biggest strain on your gas usage, it make sense  to properly winterize your home and ensure that your heat is being used as wisely as possible. Some things that can have an effect on your average gas bill include sealing your windows and doors, adding more insulation to your attic, and checking your fireplace flue for improper seals, as well as capping off your chimney to prevent air and moisture from getting inside.

How To Reduce Your Utility Bill

It’s possible to reduce the money you spend on electricity, water and gas simply by changing your habits or investing in energy-efficient appliances and insulation. Here are some changes that could possibly lead to big savings:

  • Work that thermostat: In the winter, keep your home colder when you’re not in the house and only boost the temperature when you return. In the summer, let the temperature rise in your home when you’re out. There’s no need to blast the heat or air conditioning if you’re not around to enjoy it.
  • Check your windows and doors: Drafty windows and doors cause your home’s heating and cooling systems to work harder. That increases your monthly utility bills. Replace windows that leak air with more efficient models. Do the same with your doors to keep the cold and hot air inside your home.
  • Take shorter showers: You can dramatically cut your water usage and lower your water bill by taking shorter showers. Reducing your shower time by as little as 5 minutes a day can make a dramatic impact.
  • Invest in a more efficient showerhead: New showerheads, even efficient ones, aren’t overly expensive. By investing in a showerhead that uses less water you can further reduce your monthly water bills by a significant amount.
  • Don’t use hot water in your washing machine: You’d be surprised at how much more energy your washing machine will use when you wash your clothes in hot water. To save on energy usage, wash your clothes in cold or warm water instead.
  • Fix faucets that leak: A leaky faucet is annoying, but it’s also expensive. All that dripping adds up to a lot of wasted water by the end of the month. Fix your drippy faucets and watch your water bill dip.
  • Invest in energy-efficient appliances: It might be expensive to replace older appliances with energy-efficient models, but these newer models consume far less energy. Spending your money on a more efficient refrigerator, dishwasher, furnace or air conditioning unit can end up leaving you with far lower bills each month.
  • Invest in new light bulbs: Newer light bulbs of the fluorescent or LED variety consume far less energy than your typical halogen light bulb.

What is the average UK energy bill?

Your energy bill will depend on multiple factors. These include your location, the tariff you’re on, how many people there are in your household and how energy efficient your home is. But understanding the average gas and electricity bills in the UK can be a useful benchmark.

Average electric bill

According to Ofgem, the average household of 2.4 people uses 2,900 kWh of electricity each year, at an average cost of 20p/kWh.

This equates to an average electric bill of £580 per year or £48.33 per month.

Average gas bill

When it comes to the average gas bill, the average UK household uses 12,000kWh of gas every year at a cost of 7p/kWh.

This equates to an average of £840 per year or £70 per month.

What Is a Normal Gas Bill?

To get a general idea of what you can expect to spend, it helps to look at state averages for monthly residential natural gas costs. A 2017 study by Wallethub used data from the U.S. Energy Information Administration to rank the states by utility costs, and the results range from a mere $3 average per month in Florida to $60 average per month in Michigan.

That makes sense, since Florida is a very warm state and Michigan has very cold winters. But these totals don’t tell the whole story: Hawaii, for example, was second-cheapest with average monthly gas costs of $4. But Hawaii ranks first in terms of the price of natural gas, since its supply must either be brought in on tankers or created synthetically. The high cost of gas means gas-powered appliances are unpopular in Hawaii, and the mild climate means little gas is spent on space heating, which is why the typical gas bill is still so small.

How much are utilities for an apartment or home in your area? If you want the most accurate estimate, the best source is the person who was paying the gas bill before you came along. When looking at rentals, ask the property manager about the typical energy costs, and if they don’t know, see if they can find out from the previous tenant. If you’re buying a home, direct those questions to the seller or real estate agent. Still, your bills might vary if your energy consumption habits differ from the previous tenant or owner.

How reliable is the service this rate provides?

The Natural Gas Rate for Residential Service provides uninterrupted service to your home, except in emergencies. This means gas is available to you whenever you need it. The only exception — as with any gas service — is when unexpected events occur such as a interruption due to digging into a gas line. When this happens, Peoples Gas responds immediately to restore service as soon as possible.

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What charges are involved?

The following charges appear on your monthly gas bill:

Delivery charge

The delivery charge is made up of a customer charge, a volumetric distribution charge and a storage charge.

The customer charge covers many of the fixed costs to deliver safe and reliable natural gas. These costs exist regardless of how much gas a customer uses. Fixed costs include expenses related to:

  • Natural gas mains and other infrastructure that is required to deliver gas
  • Labor required to maintain the gas main
  • Labor and supplies to read the meter
  • Qualified people to respond to gas emergencies

The volumetric distribution charge on your bill varies each month based on how many therms of gas you use. The storage charge covers some of the costs associated with the storage of natural gas.

Delivery charges on your gas bill

Type of natural gas service Type of customer Customer charge* Distribution charge
Residential service to single-family home, two-flat served by one meter, condominium or individually metered apartment Rate 1 heating sales $34.12 per month $0.19477 per therm
Rate 1 heating transportation $34.14 per month $0.19477 per therm
Rate 1 non-heating sales $17.07 per month $0.14964 per therm
Rate 1 non-heating transportation $17.13 per month $0.14964 per therm

* Includes charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants, adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.

Storage charge
For sales customers storage service charge $0.03658/therm
For transportation customers storage banking Charge $0.00460/capacity therm

Gas charge

The Gas Charge is for the purchase, transportation and storage of gas, as well as the management of gas supplies for our customers. This charge includes the actual price we pay to purchase gas from suppliers, including the costs of interstate pipeline transportation and storage services (these charges vary each month, depending on the market price of natural gas.) Learn more.

Month Price per Therm
July 2022 $1.2515
June 2022 $1.1773
July 2021 $0.6277

Note: Peoples Gas does not profit from the price of gas, which appears on your bill as the Gas Charge. This charge reflects Peoples Gas’ actual cost for gas.

See a list of Historical gas charges.

Peoples Gas Energy Efficiency Program

Each month, your bill may include a charge that pays for the costs related to energy efficiency and on-bill financing programs mandated by Illinois Public Act 96-0033. The programs offer incentives for customers to make energy-saving improvements to their homes.

Environmental charge

A charge that pays for the cleanup from past manufactured gas operations.

Uncollectible expense adjustment – gas costs

This adjustment applies to Sales Customers only. Factors of 0.0288 for Heating Customers and 0.0508 for Non-Heating Customers applied to the gas charge on your bill to pay for gas supply-related uncollectible accounts expenses.

Volume balancing adjustment

This tool separates the amount we charge to deliver gas from customers’ energy use and taxes. Generally, when weather is colder than normal, customers will receive a credit and when it’s warmer than normal, customers will receive a charge. The adjustment relates only to the cost for delivering gas to you. It does not in any way affect charges for the gas you use.

Qualified infrastructure plant charge

A percentage filed monthly with the ICC that pays for the costs of qualified infrastructure investments allowed by Illinois Public Act 98-0057.

Storage gas charge

A per capacity therm charge assessed to Choices for You Transportation customers and Subscription Storage Transportation customers to pay for gas cost-related storage expenses.

Hub credit gas charge

A separate per therm adjustment filed monthly with the ICC related to interstate storage and transportation services.

Taxes

  • Chicago municipal tax: imposed by the city of Chicago.
  • State tax (Illinois gross revenue tax): mandated by the state of Illinois to fund the Illinois Commerce Commission.
  • State gas revenue tax: either 5 percent of current charges before taxes or 2.4 cents per therm, whichever is lower.

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Gas vs. Electricity: Which is Better?

Homeowners who are thinking about moving to a new home or building a new home might also consider energy sources used to power their homes. Some prefer one energy option over the other; some cooks love gas-powered stoves over electric. However, rates also could impact this preference, too.

Check out the rates for electricity and natural gas. These rates may impact the energy option you prefer for your home.  

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