Rates & Charges

Rates & Charges

How Do I know Which Rate I am Charged Under?

To find out what rate you are on, look at the top section of your bill under the service classification section. Refer to the sample bill image below:

Rates & Charges

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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 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. For example, fixed costs include:

In fact, 95% of the costs to deliver natural gas to your home are fixed. The Fixed charge is the same for all customers with similar gas use.

The Volumetric charge on your bill varies each month based on how many therms of gas you use.

Delivery Charges on Your Gas Bill

Type of Natural Gas Service Type of Customer Customer Charge Volumetric Charge
Residential service to single-family home, two-flat served by one meter, condominium or individually metered apartment Rate 1 $15.95 per month First 50 therms $.33606
Over 50 therms $.10580

Gas Charge

The Gas Charge is 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 with the market price of natural gas.)

Month Price per Therm
November 2009 $0.5465
October 2009 $0.5068
November 2008 $1.0198

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 for the future. This program is a collaborative effort with other public and private organizations and will be administered by third parties with experience in energy efficiencies. More information will become available throughout the year.

Environmental Charge

A charge that pays for the cleanup from past manufactured gas operations.

Volume Balancing Adjustment

This tool separates the amount we charge to deliver gas (25% of a typical heating customer's bill) from customers' energy use and taxes (about 75% of a typical heating customer's bill). 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

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Who is This Rate For?

The Natural Gas Rate for Residential Service is designed to serve:

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 enrolled in our supplier choice program can learn about their charges in the Choices for YouSM section of this site.

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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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