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 home
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 monthly natural gas bill.
How do I know which rate I am charged?
To find your rate, look at the top section of your bill under the service classification section. The image below shows a bill for a Rate 1 Heating Sales customer.
Am I a heating customer or non-heating customer
Heating customers are customers who use gas as their principal source of space heating. Non-heating customers are customers who do not use gas as their principal source of space heating. The rates for Heating Customers differ from those for Non-Heating Customers. If you have questions about the difference between the "Heating" and "Non-Heating" designations or would like to request an inspection to make sure your service is classified correctly, please call us at 866-556-6001.
Am I a sales customer or transportation customer?
"Sales customers" served under Rate 1 purchase natural gas directly from
Peoples Gas, which also delivers the
gas as a bundled service. "Transportation customers" served under Rate 1 purchase
gas from an alternate supplier through the Choices for You program, although
Peoples Gas is responsible for delivering
the gas.
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What charges are involved?
The following charges appear on your monthly gas bill:
Delivery charge
The delivery charge is made up of a customer charge, a volumetric distribution
charge 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 is 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
| Type of natural gas service |
Type of customer |
Customer charge* |
Distribution charge |
| Residential service to single-family home,
two-flat served by one meter, condominium or individually metered apartment |
Rate 1 heating sales |
$25.78 per month |
$0.46524 per therm |
| Rate 1 heating transportation |
$25.78 per month |
$0.46524 per therm |
| Rate 1 non-heating sales |
$14.75 per month |
$0.92110 per therm |
| Rate 1 non-heating transportation |
$14.75 per month |
$0.92110 per therm |
* Excludes charges set by the State of Illinois to fund
weatherization, energy assistance, renewable energy grants, adjustments allowed by
Illinois Public Acts 96-0033 and 99-0906.
| Storage charge |
For sales customers
storage service charge |
$0.07812/therm |
For transportation customers
storage banking Charge |
$0.00997/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.)
Learn more.
| Month |
Price per Therm |
| April 2024 |
$0.2593 |
| March 2024 |
$0.3389 |
| April 2023 |
$0.2976 |
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.
Peoples Gas Energy Efficiency 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 homes.
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. Factors of 0.0338 for Heating Customers
and 0.0371 for Non-Heating Customers applied to the gas charge on your bill to pay for gas
supply-related uncollectible accounts expenses.
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.
Qualified infrastructure plant charge
A percentage filed monthly with the ICC that pays for the costs of qualified infrastructure
investments allowed by Illinois Public Act 98-0057.
Storage gas charge
A per capacity therm charge assessed to Choices for You Transportation customers and Subscription Storage Transportation customers to pay for gas cost-related storage expenses.
Hub credit gas charge
A separate per therm adjustment filed monthly with the ICC related to interstate storage and transportation services.
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.
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Who is this rate for?
The natural gas rate for residential service is designed to serve:
- your single-family home, two-flat served by one meter, condominium, or
- your apartment if it has its own meter
If you live in an apartment, condominium or other building where three or more
units are served by one meter, the Peoples Gas rates for business applies.
Customers signed up for our supplier choice program can learn about their charges.
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How reliable is the service this rate provides?
The Natural Gas Rate for Residential Service provides uninterrupted
service to your home, except in emergencies. This means gas is available to
you whenever you need it. The only exception — as with any gas
service — is when unexpected events occur such as a interruption due to
digging into a gas line. When this happens,
Peoples Gas responds immediately
to restore service as soon as possible.
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How is the gas I use measured?
The amount of gas flowing through your meter is measured in "hundred
cubic feet" (CCF). But you are charged based on the average heat content
of the gas delivered to your home — or the number of therms you use.
One therm is equal to 100,000 British Thermal Units (BTUs). One BTU
represents the amount of heat needed to raise one pound of water one degree
Fahrenheit at sea level.
Your bill shows how much gas (CCF) you used for the past month and a
calculation that converts the amount of gas used (CCF) to reflect the heat
content of the gas (therms). The heat content of gas may vary.
Peoples Gas determines the heat
content of gas received from our supplier for the past month. The result is
shown on your monthly bill.
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