A monthly charge that is billed to the SVT supplier to recover the cost of
providing storage and daily balancing service to Choices for YouSM customers. The
ABGC is based on certain firm storage and transportation services that the
Company purchases. The ABGC, as approved by the Illinois Commerce Commission, can
be found in Rider 2, Gas Charge in the company's schedule of rates.
Each day, the supplier is responsible for providing gas to meet their customers'
daily requirements. This gas may come from supplies that the supplier is
purchasing on behalf of the customer and delivering to our gas distribution system,
or it may be gas that the supplier is withdrawing from storage. The gas withdrawn
from storage comes from a storage service provided by the Company to the supplier.
ABGC includes part of the cost of providing this storage service to suppliers.
ABGC also includes the cost of providing daily balancing. When suppliers deliver
gas to our distribution system and/or withdraw gas from storage to meet the
demands of their customers, the supply that they provide does not always match the
gas that their customers consume. This mismatch or imbalance between supply and
demand occurs daily. The Company will use its storage and related services to
provide additional gas or absorb the excess supply to balance the differences
between the gas that the supplier provides and the gas that the customers consume.
The cost of using purchased services to provide this daily balancing is also
included in ABGC.
The charge for ABGC is calculated by multiplying the monthly ABGC by the supplier's
SVT Pool's monthly consumption.)
Account agent
A third party who is authorized to purchase, manage and/or bill for natural
gas service. For example, when you sign a contract with a supplier, they become
your account agent and are authorized to buy natural gas on your behalf and may
also be authorized to receive bills from the utility and other information that
would otherwise be sent directly to you.
Adjusted Monthly Storage Activity (Adjusted MSA)
The month's Monthly Storage Activity (MSA) adjusted for the previous months'
Storage Carryover.
Billing Cycle
The amount of time covered by one bill, usually one month.
Budget Plan
A payment option that divides a customer's estimated utility costs into equal
monthly payments, allowing customers to pay the same amount on their bill each
month over a specified period of time.
Combination Packages
Suppliers may offer packages that include both gas and electric offers. In
May 2002, residential customers of public electric utilities in Illinois also will
have a choice of their electric supplier.
Commodity
The natural gas you use, not including any services provided by the supplier
or utility.
Choices for YouSM
A program offered by Peoples Gas
that allows all residential and small business customers to choose their natural
gas supplier.
Customer Charge
A fixed monthly charge that recovers the costs associated with making service
available to customers. This charge also funds Illinois State weatherization,
energy assistance, and renewable energy grants.
Deregulation
Separating the service of purchasing natural gas from the distribution
function of the utility and allowing other, suppliers the opportunity to sell
natural gas to customers. The rates and services of these suppliers are not
regulated by the Illinois Commerce Commission. The utility continues to deliver
the natural gas.
Distribution Charge
A per-therm charge assessed by
Peoples Gas based primarily on the
volume of gas delivered to the customer.
Fixed Bill
The customer pays the same amount every month for a set period of time. Changes
in the customer's use or the market price of natural gas should not affect the
amount the customer pays.
Fixed Price
The customer pays the same price per therm for natural gas each month, but
their bill will vary based on the amount of gas they use. Changes in the market
price of natural gas should not affect the amount they pay. This type of contract
offers stability. If market prices go up, the customer is locked in at a lower
rate. But, if market prices go down, the customer will pay the amount they have
locked in.
Gas Charge
A charge that recovers the cost of
Peoples Gas' gas supply. The gas charge
is determined monthly and filed with the Illinois Commerce Commission.
Index Price
See Market-based
Letter of Agency
A written agreement that a residential customer switching gas suppliers must
sign, unless the customer is enrolling by internet or telephone, to authorize
the new supplier to purchase gas on the customer's behalf.
Market-based
The customer can expect the price for natural gas to change each month. The
supplier sets the monthly price per therm based on one or more natural gas market
benchmarks or indicators. The customer can expect their price to fall and rise
with market prices. Natural gas prices generally change over the course of a
year.
Pool MDQ Percentage
The Pool MDQ divided by the System MDQ.
Monthly System Coefficient
A number that determines in aggregate how SVT Suppliers' storage will deviate
as weather varies from normal.
NYMEX
An acronym for the New York Mercantile Exchange where contracts for
commodities, including natural gas, are traded. At the NYMEX, natural gas
futures and options contracts are traded and future pricing directions are
established. Suppliers may use the NYMEX to establish their pricing offers.
Open Enrollment
Customers can enroll in the program and are eligible to choose a natural gas
supplier at any time. There is no deadline for signing up, and customers may
switch between suppliers at any time — subject to any supplier contract
provisions. There are annual enrollment limitations for residential customers.
Pool Coefficient
The number that determines by how many dekatherms a pool's storage will
vary from the planned storage with variations in weather. It is calculated by
multiplying the Monthly System Coefficient by the Pool MDQ Percentage.
Retail Customer
A customer who buys gas supply service from the utility and who does not
receive supply service from a gas supplier.
Single Billing
A service provided by either
Peoples Gas or a supplier which
offers one bill containing charges from both
Peoples Gas and the supplier.
Storage
A type of service offered by pipelines and other owners of storage facilities
whereby the gas may be placed in the facility, usually during the summertime, and
kept until a later date when the owner of the gas may withdraw the stored gas,
usually in wintertime.
Storage Carryover
The quantity of gas withdrawn from storage greater than (surplus) or less than
(deficit) the month's Adjusted MSA, in other words, the amount by which actual
withdrawals deviate from the planned withdrawals.
Supplier/marketer
A company other than the local utility that supplies natural gas to
customers.
System Maximum Daily Quantity (System MDQ)
The maximum daily quantity that all customers within the utility's system
require on a peak day.
Therm
The basic unit for measuring natural gas use.
Utility Affiliate
A supplier/marketer that is owned all or in part by the same corporation that
owns the local utility.
Variable Price
The price for natural gas may go up or down with market trends. But the price
per therm may not necessarily be tied to a market index. For example, it may be
based on the supplier's average cost to purchase natural gas.
Weighted Average Cost of Gas (WACOG)
An average cost of gas based on your gas use. If you use more gas in a given
billing period, that month's gas price carries more weight in the calculation.
If you use less gas in a billing period, that month's gas price carries less
weight. Since gas costs change throughout the year, this is an accurate way to
figure out a customer's average yearly price per therm.
