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Our rates for natural gas service are determined through a combination of rules in the cities where our consumers live, the Railroad Commission of Texas, and market factors.

Understanding your bill

Our natural gas rates may appear in one of 3 categories on your monthly bill:

  • Environs - Residential or Commercial
  • Environs - Public Authority
  • Incorporated (within the city limits of Magnolia) - Residential or Commercial
Environs - Residential and Commercial Service Rates

Effective April 1, 2018

​Charge ​Price
​Monthly customer charge $18.35/bill 
Additional components of your 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


*ccf = a measurement of natural gas volume that is equivalent to 100 cubic feet of gas
**IRA = interim rate adjustment

From December through February usage months, we use a weather normalization factor that can make the volumetric service fee go up or down.  

We are currently assessing IRA surcharges as an increase in the monthly customer charge.  The purpose of IRA surcharges is to recover 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 in effect for unincorporated areas in the EPCOR distribution area.

These surcharges will appear on your bill until we apply for a full rate review before the Railroad Commission of Texas. This typically occurs every 5-6 years. The last rate review was in 2012.

Annual surcharges

Along with the regular monthly charges listed above, you will see the following annual surcharges on your bill:  

  • Ad valorem tax - typically assessed at the beginning of each year (per ccf)
  • Pipeline safety surcharge - assessed each year on a per customer basis
  • State franchise tax - assessed each year (per ccf)
Environs - Public Authority Service Rates
​Charge​Price
​Monthly customer charge​$25.00/bill
Additional components of your gas bill ​ ​
​Volumetric service fee                    ​$0.225/ccf*
​Cost of gas fee   $/ccf - varies each month


*ccf = a measurement of natural gas volume that is equivalent to 100 cubic feet of gas

Annual surcharges

Along with the regular monthly charges listed above, you will see the following annual surcharges on your bill:

  • Ad valorem tax - typically assessed at the beginning of each year (per ccf)
  • Pipeline safety surcharge - assessed each year on a per customer basis
  • State franchise tax - assessed each year (per ccf)
Incorporated - Residential and Commercial Service Rates

​Effective September 5, 2018

​Charge​Price
Monthly customer charge ​$21.44/bill
​ ​Additional components of your gas bill
​Volumetric service fee​$0.94477/ccf*
​Cost of gas fee   ​$/ccf - varies each month
​City franchise tax​5% of total gas costs


*ccf = a measurement of natural gas volume that is equivalent to 100 cubic feet of gas

From November through March usage months, we use a weather normalization factor that can make the volumetric service fee go up or down.

Annual Surcharges

Along with the regular monthly charges listed above, you will see the following annual surcharges on your bill:

  • Ad valorem tax - typically assessed at the beginning of each year (per ccf)
  • Pipeline safety surcharge - assessed each year on a per customer basis
  • State franchise tax - assessed each year (per ccf)
Environs - Residential Secondary Meters Service Rates

​These rates are only applicable to residential secondary meters at a single residence. For example, you may qualify if you have a primary meter for your house and a secondary meter for a generator or pool heater.

​Charge​Price
​Monthly customer charge​$12.50/bill
​ ​Additional components of your gas bill
​Volumetric service fee    ​$0.705/ccf*
​Cost of gas fee   $/ccf - varies each month


*ccf = a measurement of natural gas volume that is equivalent to 100 cubic feet of gas

From December through February usage months, we use a weather normalization factor that can make the volumetric service fee go up or down.

Annual surcharges

Along with the regular monthly charges listed above, you will see the following annual surcharges on your bill:

  • Ad valorem tax - typically assessed at the beginning of each year (per ccf)
  • Pipeline safety surcharge - assessed each year on a per customer basis
  • State franchise tax - assessed each year (per ccf)