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 for Rate 2
Sales Customers are customers that purchase natural gas directly from Peoples Gas under Rate 2 – General Service only. Transportation Customers are customers who take service under Rate 2 and purchase gas from an alternate supplier under Rider CFY(Choices For You), or Rider FST (Full Standby Transportation), or Rider SST – (Subscription Storage Transportation) or Rider SST-T (Selected Standby Transportation – Transition).
The following charges appear on your monthly gas bill:
Delivery Charge
The delivery charge is made up of a customer charge, volumetric distribution charges and a storage charge.
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 distribution charge on your bill varies each month based on how many therms of gas you use. The storage charge covers some of the costs associated with the storage of natural gas.
Delivery Charges on Your Gas Bill
Sales Customers
| Type of Natural Gas Service | Type of Customer | Customer Charge* |
|---|---|---|
| General service to multi-family, commercial and industrial customers | Meter Class 1 (700 CFH or less) | $29.46 |
| Meter Class 2 (701 - 3,000 CFH) | $96.66 | |
| Meter Class 3 (Over 3,000 CFH) | $239.86 |
Transportation Customers
| Type of Natural Gas Service | Type of Customer | Customer Charge* |
|---|---|---|
| General service to multi-family, commercial and industrial customers | Meter Class 1 (700 CFH or less) | $30.04 |
| Meter Class 2 (701 - 3,000 CFH) | $97.24 | |
| Meter Class 3 (Over 3,000 CFH) | $240.44 |
* 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 96-0033.
| Volumetric Distribution Charge | |
|---|---|
| First 100 therms | $0.30167 |
| Next 4,900 therms | $0.10122 |
| More than 5,000 therms | $0.08190 |
| Storage Charge | |
|---|---|
| For Sales Customers Storage Service Charge |
$0.04234/therm |
| For Transportation Customers Storage Banking Charge |
$0.00550/capacity therm |
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 |
|---|---|
| February 2012 | $0.3631 |
| January 2012 | $0.4190 |
| February 2011 | $0.5099 |
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.
Energy Efficiency Programs
- Natural Gas Savings Program: Each month, your bill may include a charge that pays for the costs related to energy efficiency and on-bill financing programs mandated by Illinois Public Act 96-0033. The programs offer incentives for customers to make energy-saving improvements to their businesses.
- Efficiency Program (Enhanced Efficiency Program): Your bill may include a credit or charge related to an energy efficiency program called the Chicagoland Natural Gas Savings Program, which is being gradually phased out and replaced by the Peoples Gas Natural Gas Savings Program.
Environmental Charge
A charge that pays for the cleanup from past manufactured gas operations.
Uncollectible Expense Adjustment – Gas Costs
This adjustment applies to Sales Customers only and is applied to the gas charge on your bill and pays for gas supply-related uncollectible accounts expenses.
Infrastructure Adjustment Charge
This adjustment funds upgrades to the Peoples Gas delivery infrastructure, specifically the replacement of cast and ductile iron mains. The adjustment is billed over a nine-month period each year, from April through December.
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.
Aggregation Balancing Charge
A charge that is assessed to Choices for You Transportation customers to pay for gas related storage expenses.
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.