Natural Gas Service Rates

University of Utah Rate Schedule for Natural Gas Service FY27

Effective for Bills Dated After

July 2026

Application

This schedule is for natural gas service for all buildings 1) supplied through one of the University of Utah’s
central distribution systems or 2) systems directly served through an external utility company and managed
by Facilities.

Recent Billing Rates – For Reference Only

Rates calculated monthly based on actual natural gas bills.

Rate Calculations

Rates are calculated monthly by dividing the sum of campus production costs (in U.S. dollars) by the sum of
natural gas consumption (in Dth) over the same period. Costs and consumption of gas used for the production
of central heating water is excluded from this billing rate.

Costs include the purchase of natural gas and associated supplier fees, surcharges, and taxes. Costs also include
the University’s labor and material costs of the previous calendar year for operation, maintenance, and
metering of the natural gas systems.

Starting in FY26, renew and replace (R&R) is collected from all users for the replacement of major assets
necessary for the distribution of natural gas including pipe and meters. R&R collection is based on 1) planned
and approved projects along and 2) maintaining an account balance that would recover emergency equipment
replacement.

Gas is measured by volume, standardized, and converted to energy (in Dth) based on average monthly supplier
heat content.

Scheduled Rate Adjustments

Rates are calculated monthly and are primarily determined by the resource cost. Therefore, rate forecasts only
consider information available at the time of the forecast (i.e. February each calendar year) but monthly rates
would reflect actual prices from suppliers.

Monthly rates reflect any changes in the market. After high gas prices in January 2023, the University has a
long-term hedge (approximately 20% of volumes) and will continue to monitor monthly pricing. Hedging
reduces pricing volatility while taking advantage of Transportation Service contracts.

Time Periods

Seasonal rate adjustments of suppliers are directly reflected in monthly purchase costs.

Consumption Measurement and Calculation

Where one or more commercial-grade building-level meters are present, consumption is directly measured.
Where existing devices are unable to directly measure consumption for a group or area, values are calculated
based on the measurements of the closest parent meter and the percentage of served floor area.

Readings typically occur once a month and are estimated during months when meters are inaccessible or
awaiting repair.

Sustainability & Energy

Email: energy@fm.utah.edu