Rates of Service

Below is a listing of our current rates.  Our rates are broken down by and designated on your monthly billing statement as follows:

  • Environs - Residential or Commercial,
  • Environs - Public Authority or, 
  • Incorporated (within the City Limits of Magnolia) - Residential or Commercial

 

Environs - Residential & Commercial Service Rates - As of April 1, 2018

Monthly Customer Charge $18.35/bill
Additional Components of a Gas Bill
Volumetric Service Fee $0.705/ccf
Cost of Gas Fee $/ccf varies each month
IRA 2013 Surcharge $7.83/bill
IRA 2014 Surcharge $4.19/bill
IRA 2015 Surcharge $3.18/bill
IRA 2016 Surcharge $3.38/bill

The Volumetric Service Fee rate per CCF will vary from the usage months of December through February due to a weather normalization factor.  The weather normalization factor can cause the Volumetric Service Fee rate to increase or decrease.

IRA Surcharges are currently being assessed as an increase in the Monthly Customer Charge.  The IRA Surcharges are designed to recover the incremental costs related to the capital investments the Company has made in its natural gas distribution system for the years listed.  Those costs are incremental to and not included in the rates currently in effect for the unincorporated areas of Hughes.  The surcharges will remain on the bill until Hughes Natural Gas applies for a full rate review before the Railroad Commission of Texas.  This typically occurs every 5-6 years, with the last rate review being in 2012.

Additionally, there are three surcharges assessed throughout the year: 

  1. Ad Valorem Tax - Typically assessed the beginning of each year (per ccf)
  2. Pipeline Safety Surcharge - Assessed each year on a per customer basis. 
  3. State Franchise Tax - Assessed each year (per ccf)

As of March 2018, the Rate Case Surcharge has been recouped.  Beginning with the April 2018 Billing, the Rate Case Surcharge of $.057/ccf will no longer be assessed. 

Incorporated - Residential & Commercial Service Rates - As of June 7, 2017

Monthly Customer Charge $20.42/bill
Additional Components of a Gas Bill
Volumetric Service Fee $0.89978/ccf
Cost of Gas Fee $/ccf varies each month
City Franchise Tax 5% of Total Gas Costs

The Volumetric Service Fee rate per CCF will vary from the usage months of November through March due to a weather normalization factor.  The weather normalization factor can cause the Volumetric Service Fee rate to increase or decrease.

Additionally, there are three surcharges assessed throughout the year: 

  1. Ad Valorem Tax - Typically assessed the beginning of each year (per ccf)
  2. Pipeline Safety Surcharge - Assessed each year on a per customer basis. 
  3. State Franchise Tax - Assessed each year (per ccf)

As of February 2017, the Rate Case Surcharge has been recouped.  Beginning with the March 2017 Billing, the Rate Case Surcharge of $.067/ccf will no longer be assessed.

Environs - Public Authority Service Rates

Monthly Customer Charge $25.00/bill
Additional Components of a Gas Bill
Volumetric Service Fee $0.225/ccf
Cost of Gas Fee $/ccf varies each month

Additionally, there are three surcharges assessed throughout the year: 

  1. Ad Valorem Tax - Typically assessed the beginning of each year (per ccf)
  2. Pipeline Safety Surcharge - Assessed each year on a per customer basis. 
  3. State Franchise Tax - Assessed each year (per ccf)

As of March 2018, the Rate Case Surcharge has been recouped.  Beginning with the April 2018 Billing, the Rate Case Surcharge of $.057/ccf will no longer be assessed.

Environs - Residential Secondary Meters Service Rates

Monthly Customer Charge $12.50/bill
Additional Components of a Gas Bill
Volumetric Service Fee $0.705/ccf
Cost of Gas Fee $/ccf varies each month

The Volumetric Service Fee rate per CCF will vary from the usage months of December through February due to a weather normalization factor.  The weather normalization factor can cause the Volumetric Service Fee rate to increase or decrease

Additionally, there are three surcharges assessed throughout the year: 

  1. Ad Valorem Tax - Typically assessed the beginning of each year (per ccf)
  2. Pipeline Safety Surcharge - Assessed each year on a per customer basis. 
  3. State Franchise Tax - Assessed each year (per ccf)

These rates are only applicable to residential secondary meters at a single residence.

An example of an account that would potentially qualify would be a customer having one primary meter for the house and a secondary meter for a generator or pool heater.

As of March 2018, the Rate Case Surcharge has been recouped.  Beginning with the April 2018 Billing, the Rate Case Surcharge of $.057/ccf will no longer be assessed.