Yes. Since 1982, the Commission has required gas utilities to charge GCR Factors on a volumes billed basis (all volumes included in that month's bill are priced at that months GCR Factor), rather than on a service rendered basis (which requires two prices, one for gas consumed in the current month and one for gas consumed in the previous month). Because gas costs and the GCR Factor can increase or decrease from month to month, the amount a customer pays over time will be balanced out when bills are rendered on a volumes billed basis.

When a gas utility's rate changes, some rate changes are applied to bills on a service rendered basis, and other rate changes are applied to bills on a volumes billed basis.  What is the difference and when are they normally applied?

When a rate change is applied on a service rendered basis, all gas delivered to the customer on and after the effective date of the rate change is billed at the new rate. All gas that was delivered to customer prior to the effective date is billed at the old rate. This occurs when the utility's base rates (i.e. Monthly Customer Charge and the Distribution Charge) are changed as a result of a Commission rate order that involves the gas utility's delivery charges. When a rate change is applied on a volumes billed basis, the new rate will be applied to all gas consumption included in that customer's monthly bill, regardless of when the gas was actually consumed. This occurs when the gas commodity portion of a bill changes from month to month. The gas commodity portion of a bill, which is the GCR Factor for gas utilities or the cost of gas charge for alternative gas suppliers, can increase or decrease from month to month without a Commission order. The utilities annual gas costs are reconciled with the revenues received from applying the twelve monthly GCR Factors to ensure the utility does not over or under collect. Bills rendered on a volumes billed basis is required for this reconciliation.