We have officially reached the time of the year when the post-holiday bills are rolling in, and right in the middle of all of that is your first utility bill of the new year. 

The weather in the Pittsburgh area, combined with all the time spent at home, and your first bills of the year could be a bit of sticker shock. 

That is, if you can even understand how to read the sticker in the first place. 

Why are my utility bills so high?

It can be intensely frustrating seeing this charge and that charge, all of which can add up very quickly. 

Just looking out the window or listening to the burners rolling full-blast in your furnace can be the tell-tale sign that a potentially eye-popping bill is on the way. 

“You have blowers and fans, and the bigger your house is, maybe more devices, you have to move that air around your house,” explained Matt Neistein of Duquesne Light. 

So when the bills arrive, the questions about the bills aren’t far behind. 

“Every customer has a unique situation, I would say,” added Nick Paradise from People’s Gas. 

Unique or not, the common denominator is staring at the bill and wondering what you’re paying for. Paradise said your gas bill will show you how many cubic feet of gas you burned, and your electric bill will show you how many kilowatt-hours you have used. 

Neistein said that if you’re a Duquesne Light customer, start with the usage comparison chart and see how this year compares to last year. 

“If you have the same home with the same equipment, that should generally stay pretty level in terms of usage,” he explained. 

How to read charges on your utility bills

The big line items on your bill are in two parts. 

For your gas bill, you’ll find the commodity charge you pay your gas supplier. 

“The commodity charge is the actual gas that you are burning inside your home,” said Paradise. 

That is measured and charged per thousand cubic feet. That same measure is used to pay People’s Gas, or the gas company you get service from, to actually get the gas to your home. 

“The delivery from wherever the gas came into our system, through our pipelines, and to your home,” added Paradise. 

Paradise also explained the capacity charge, which is basically when they have to transport gas through a pipeline that is not theirs, they have to pay for the space. 

When it comes to your electric bill, there’s the supply charge, which is paid to your chosen supplier for the kilowatt hours you use. In order to get that power to your home, your electric company charges a distribution charge. 

“That’s a very, very basic thing; like poles, wires, substations, paying our line workers who go out there and maintain all of those things,” said Neistein. 

Some other things to be on the lookout for on both your electric and gas bills: you will see a line item called “customer charge” and another called the “disc surcharge.” Those are regulated by the Public Utilities Commission to allow utilities to recover some of their operating costs, as well as costs of repairs and upgrades to the infrastructure.    

Will alternative suppliers save me money?

The utilities go out and contract for their gas or electricity at the best price they can find, and pass it along to customers dollar for dollar. 

The utilities said if the bill is cumbersome, you do have options, like being careful with outside suppliers. 

Alternative suppliers will initially offer a rate that might be lower, but eventually that rate could rise, and if you’re not paying close attention, you wind up paying more than what the utility company is charging. So be mindful and be careful.   

“Our customers last year paid $25 million more than they would have if they had just stuck with what we call the price to compare,” Neistein said. 

There’s also the option of reaching out to the utility companies to get on a budget plan that softens the blow. 

“As long as you’re current on your bill, you can enroll at any time,” Paradise said. 

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