Purchased Gas Factor (PGF)

Take a look at your most recent CoServ Gas bill. Sandwiched in between your Usage Charge and the Customer Charge, you’ll find the PGF. So what does it stand for, and why does it change?

PGF is short for “Purchased Gas Factor.” By multiplying this factor by your gas usage, you’ll arrive at the dollar figure in the PGF line item of your monthly statement. That amount represents our wholesale costs for the gas you used during the billing cycle.

Most businesses charge a set price for a particular product or service, and you’ll probably never know the real wholesale value. But, at CoServ Gas, we clearly disclose our wholesale cost of energy on your bill. Whenever the PGF fluctuates, it means our wholesale cost of gas went up or down.

Still have questions? Read more below

Where does your natural gas come from?

CoServ Gas is a local distribution company, which means we deliver natural gas to your home or business through our pipelines. However, we don’t actually drill for gas. Instead, we purchase it from several wholesale suppliers, and we continually strive to secure the most competitive rates. You benefit from our extra effort since we don’t mark up those costs.

Does the PGF represent exactly what CoServ paid for gas?

The PGF is an estimate, because complete information regarding our gas costs isn't available at the time we send your bill. However, we adjust any over-charges or under-charges each month.

Why don’t you combine your wholesale costs and profits into one line item?

Most of our business costs stay fairly steady. But, due to the volatility of natural gas prices, what we pay for gas can change significantly within just a few days. Therefore, it makes more sense to separate the PGF as its own line item. This way, we can easily adjust it to reflect changes in our wholesale gas costs.

How do you calculate the PGF?

It includes two components:

  • the estimated cost of the gas itself
  • the cost for transporting the gas from our supplier to CoServ

What is CoServ doing to control the PGF cost?

We understand that volatile natural gas prices can stress your budget. That’s why we work diligently to secure the most competitive rates from multiple suppliers. And, because we don’t mark up our gas costs, we pass the savings directly to you.

With energy prices continuing to climb, we also encourage you to use less gas and electricity by making a few simple changes. Get the details in our Ways To Save section.

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