Peoples Gas Rates
Natural gas is an important part of everyday life. So it's nice to know that you can rely on Peoples Gas to keep your business comfortable.
You can also count on us to provide the information you need to manage your energy costs. A good way to start is by understanding the rates you see on your natural gas bill.
Available Rates
- Rate 2 - General Service: For general service to multi-family, commercial and industrial customers, using on average, 41,000 therms per month or less.
- Rate 4 - Large Volume Demand Service: For large volume business customers using more than 41,000 therms of natural gas per month.
- Rate 5 - Electric Generation: Designed for businesses that generate in excess of 25 MW of electricity using natural gas. For more information, please e-mail Gas Transportation Services or call 800-264-8026.
- Rate 8 - Compressed Natural Gas: For businesses using natural gas in the form of compressed natural gas.
Summary of Charges
The following charges appear on your monthly gas bill:
Delivery Charge
The delivery charge is made up of a fixed customer charge and volumetric charges.
The Customer Charge covers many of the fixed costs to deliver safe and reliable natural gas. These costs exist regardless of how much gas a customer uses. Fixed costs include expenses related to:
- Natural gas mains and other infrastructure that's required to deliver gas
- Labor required to maintain the gas main
- Labor and supplies to read the meter
- Qualified people to respond to gas emergencies
The volumetric charge on your bill varies each month based on how many therms of gas you use.
Delivery Charges on Your Gas Bill
Sales Customers
| Type of Natural Gas Service | Type of Customer | Customer Charge* | Volumetric Charge | |
|---|---|---|---|---|
| General service to multi-family, commercial and industrial customers | Meter Class 1 (700 CFH or less) | $32.15 | First 100 therms | $.30615 |
| Meter Class 2 (701 - 3,000 CFH) | $85.85 | Next 4,900 therms | $.13084 | |
| Meter Class 3 (Over 3,000 CFH) | $198.05 | More than 5,000 therms | $.10554 | |
Transportation Customers
| Type of Natural Gas Service | Type of Customer | Customer Charge* | Volumetric Charge | |
|---|---|---|---|---|
| General service to multi-family, commercial and industrial customers | Meter Class 1 (700 CFH or less) | $28.02 | First 100 therms | $.30615 |
| Meter Class 2 (701 - 3,000 CFH) | $81.72 | Next 4,900 therms | $.13084 | |
| Meter Class 3 (Over 3,000 CFH) | $193.92 | More than 5,000 therms | $.10554 | |
* Includes charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants and adjustments due to changes in Illinois Public Act 96-0333.
Gas Charge
The Gas Charge is for the purchase, transportation and storage of gas, as well as the management of gas supplies for our customers. This charge includes the actual price we pay to purchase gas from suppliers, including the costs of interstate pipeline transportation and storage services (these charges vary each month, depending on the market price of natural gas.)
| Month | Price per Therm |
|---|---|
| August 2010 | $0.5388 |
| July 2010 | $0.5754 |
| August 2009 | $0.5129 |
Please Note: Peoples Gas does not profit from the price of gas, which appears on your bill as the Gas Charge. This charge reflects Peoples Gas' actual cost for gas.
See a list of Historical Gas Charges.
Efficiency Program (Enhanced Efficiency Program)
Each month your bill includes a charge to fund programs to encourage energy efficiency and conservation, while also helping to protect the environment. This program is a collaborative effort with other public and private organizations and is administered by third parties with experience in energy efficiencies.
Environmental Charge
A charge that pays for the cleanup from past manufactured gas operations.
Infrastructure Cost Recovery (ICR)
Beginning in April 2011, your bill also will include the new Infrastructure Cost Recovery charge (ICR). The ICR will fund upgrades to the Peoples Gas delivery infrastructure, specifically the replacement of cast and ductile iron mains. The ICR will become effective April 1, 2011 and be billed over a nine-month period each year thereafter, from April through December. We will keep you informed as more details emerge.
Aggregation Balancing Charge
A charge that is assessed to Choices for You customers to pay for gas related storage expenses.
Storage Credit
A credit that is assessed to Choices for You customers for storage gas.
Volume Balancing Adjustment
This tool separates the amount we charge to deliver gas from customers' energy use and taxes. Generally, when weather is colder than normal, customers will receive a credit and when it's warmer than normal, customers will receive a charge. The adjustment relates only to the cost for delivering gas to you. It does not in any way affect charges for the gas you use.
Taxes
- Chicago Municipal Tax: imposed by the city of Chicago.
- State Tax (Illinois Gross Revenue Tax): mandated by the state of Illinois to fund the Illinois Commerce Commission.
- State Gas Revenue Tax: either 5 percent of current charges before taxes or 2.4 cents per therm, whichever is lower.