Natural 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 monthly natural gas bill.

Available rates

  • Rate 2 - General Service: For general service to multi-family, commercial and industrial customers using an average of 41,000 therms or less per month.
  • Rate 4 - Large Volume Demand Service: For large volume business customers using an average of more than 41,000 therms per month.
  • Rate 5 - Electric Generation: Designed for businesses that generate in excess of 25 MW of electricity using natural gas and sell all or part of that electricity off-system. For more information, please email 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.

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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), Rider FST (Full Standby Transportation) or Rider SST (Subscription Storage Transportation).

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 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 customer Meter class Customer charge*
Sales Meter Class 1 (700 CFH or less) $45.89
Meter Class 2 (701 - 3,000 CFH) $135.39
Meter Class 3 (Over 3,000 CFH) $356.44
Transportation Meter Class 1 (700 CFH or less) $44.99
Meter Class 2 (701 - 3,000 CFH) $134.49
Meter Class 3 (Over 3,000 CFH) $355.54

* Includes 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.

Volumetric distribution charge (sales and transportation customers)
First 5,000 therms $0.16289
Over 5,000 therms $0.09577
Storage charge**
For sales customers
storage service charge
For transportation customers
storage banking charge
$0.00530/capacity therm

** Storage charge is subject to change in June and August.

Gas charge

The gas charge is for the purchase, transportation and storage of gas, as well as the price 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
June 2021 $0.5770
May 2021 $0.5323
June 2020 $0.1985

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 businesses.

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. A factor of 0.0123 applied to the gas charge on your bill to pay for gas supply-related uncollectible accounts expenses.

Volume balancing adjustment

This tool, which we calculate annually, 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.


  • 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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