Natural gas plays a big role in homes and small businesses. It powers heating systems and home appliances, delivering comfort and efficiency year-round. Managing natural gas consumption starts with understanding how your usage is measured. If you’ve glanced at your energy bill you’ll have probably noticed ‘therms” listed in your account summary under “Current Charges” or “Gas Consumption.”
In this guide, we’ll explain exactly what a therm of natural gas is, how therm usage is calculated, and how you can use that knowledge to make informed choices about your energy usage.
What Exactly Is a Therm?
A therm is a unit of heat measurement that shows how much energy you get from natural gas. One therm is equivalent to 100,000 British Thermal Units (BTUs) of heat. This value helps utility companies and energy service companies (ESCOs) measure how much natural gas a home uses each month.
Other units used to measure natural gas include:
- BTUs: The amount of heat needed to raise the temperature of one pound of water by one degree Fahrenheit.
- CCF: One hundred cubic feet of natural gas.
- MFC: One thousand cubic feet of natural gas.
Though gas usage may be shown in CCF or MCF, electric bills usually convert these values into therms for simplicity and consistency.
Calculating the Costs
Natural gas billing can be complex, but understanding how therms are measured makes the process simpler. Energy companies calculate how many therms you consume using this formula:
Therms = CCF ÷ 1.038
This is because 1 CCF is equivalent to approximately 1.038 therms. Dividing by the equivalent value will tell you exactly how many therms you’ve used.
Alternatively, the formula for calculating therms from MCF is:
Therms = MCF ÷ 10.38
This is because MCF is 1,000 cubic feet of natural gas, while CCF is only 100 cubic feet.
Keep in mind that therm usage is only one part of your total energy cost. When reading your bill, you’ll find it includes other charges such as:
- State and local taxes
- Service fees
- Delivery charges from your utility
- Supply charges from your energy provider
- Administrative costs
- Seasonal or usage-related adjustments
Because many of these charges are set by your local utility company and state regulators, your costs can vary depending on where you live and how much natural gas you use.
5 Ways to Decrease Gas Therm Usage
Several factors influence natural gas pricing, from local demand to seasonal trends. Though you can’t control broader market conditions, there are five steps you can take to reduce your natural gas usage.
1. Use an Optimal Thermostat Setting
Setting your thermostat to its recommended settings can help reduce unnecessary energy use. In winter, this means 68°F when you’re at home and 60-62°F while you’re away.
You should also ensure your thermostat is working properly to prevent unnecessary heating cycles. If your thermostat is faulty or inaccurate, your heating system may run longer than necessary. Check your thermostat to determine if it’s still working correctly, or contact a professional for a more in-depth inspection.
2. Maintain Your HVAC System
Your furnace or boiler works harder during winter. Systems that are dirty or worn out often use more gas to produce the same amount of heat. Regular inspections and tune-ups help maintain performance and reduce wasted energy.
3. Insulate and Seal Properly
If your home is poorly insulated or drafty, more heat will escape. This results in your furnace using more therms to maintain comfortable temperatures. Seal gaps around windows and doors to add proper insulation to reduce heat loss.
4. Maintain Your Appliances
Gas appliances like water heaters, furnaces, and dryers operate best when properly maintained. Dirty burners, worn components, or clogged vents can increase gas usage. Keep vents unobstructed and replace furnace filters on schedule. A licensed technician can also ensure these systems are functioning safely and efficiently and provide repairs as needed.
5. Use Agway’s EnergyGuard® Program
If your home’s heating, cooling, or electrical systems show signs of wear, EnergyGuard can help cover repairs on eligible systems*. You can also contact Agway for vendor referrals if you need a professional to perform non-covered tests, inspections, or maintenance to prevent small issues from growing into major problems. Properly servicing your heating system ensures that you’re not wasting energy due to faulty equipment.
Keep Your Natural Gas Appliances Running With Agway®
Understanding therms and natural gas usage helps you stay informed about your energy use throughout the year. Regular inspections and proper maintenance play a big part in keeping your natural gas appliances running smoothly and safely.
If a technician notices an issue during a service visit, remember to check your EnergyGuard program first to see if repairs are covered before spending a single cent. With our reliable energy supply and repair protection, you can feel confident that your home is well cared for in every season.
Natural Gas FAQs
What is natural gas?
Natural gas is a fossil fuel primarily made of methane. It’s used for heating, cooking, and powering a variety of household appliances.
How many therms does the average household use per month?
Most households use between 100-125 therms per month during winter, depending on home size, insulation, climate, and appliances used. Usage typically drops significantly during spring and summer, down to 10-50 therms.
Is it cheaper to heat with natural gas or electricity?
Many homeowners find that heating their home with natural gas is less expensive than electricity. However, costs vary by state and utility company, as well as your system’s condition.
Why is my therm usage so high?
Therm usage typically increases during winter, when you rely on your furnace to keep your home or small business warm. However, poor insulation, drafty windows, aging equipment, or thermostat problems can also result in higher therm usage. A system inspection can help identify issues contributing to your utility costs.
*Coverage depends on commodity purchased.
