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What is the CGA?

A CGA is a Cost of Gas Adjustment, also known as a Cost of Gas Factor (CGF) in Northern Utilities' rates. Both the CGA and the CGF include the cost of the gas commodity purchased to serve the utility's customers and the cost to deliver the gas from the point of purchase to the local company’s “city gate.” The CGA is the difference between the actual cost of gas and that amount included in base rates. All three gas utilities are allowed to collect 100% of their cost of gas so any difference between actual gas costs and gas revenues are subject to future reconciliation.

Northern Utilities has a Cost of Gas Factor which changes every six months for the winter and summer periods. In addition, if it appears that Northern will either under or over collect substantially within the rate period, it may file a mid-course rate adjustment.

Both Bangor Gas and Maine Natural Gas have monthly cost of gas rates. These rates change on a monthly basis based upon the indexed projected price of gas for the upcoming month. Both offer a fixed price option so customers may choose to pay a known price for a set term, such as the upcoming winter period or 12-months.