As a CoServ Gas customer, the cost you pay for natural gas is not included in the base rate. Rather, it is passed through to you and appears on your bill as the PGF.

CoServ Gas and many other natural gas utility companies do not produce gas, but rather contract with wholesale gas vendors for supply. The Purchased Gas Factor or PGF reflects the estimated cost to CoServ to purchase this gas from the supplier and receive it into CoServ's distribution systems during the most recent service period. The PGF consists of two elements: a purchased gas cost and a transportation cost.

As mentioned above, the PGF consists of two elements. The purchased gas cost is the actual cost of gas to CoServ Gas. Natural gas prices are volatile and unpredictable, resulting in a fluctuation PGF. The other component of the PGF is the transportation cost for the pipeline company that transports the gas from the gas supplier to CoServ Gas. The PGF is passed through directly to customers. CoServ does not mark up the gas cost or transportation cost. Because complete information regarding CoServ's Purchase Gas Cost is not available at the time bills are sent, the PGF is an estimate. Any over charges are refunded or under charges are surcharged after June 30th of each year.

At CoServ Gas we are aware of the impact natural gas prices are having on our customers. We will continue to work with our wholesale providers to minimize the effect to you and look for other options and solutions to this nationwide problem.