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 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.

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.

Back to top

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 $25.81 per month $0.46583 per therm
Rate 1 heating transportation $25.81 per month $0.46583 per therm
Rate 1 non-heating sales $14.75 per month $0.92133 per therm
Rate 1 non-heating transportation $14.75 per month $0.92133 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
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
June 2024 $0.2815
May 2024 $0.2728
June 2023 $0.2356

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.


  • 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.

Back to top

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.

Back to top

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.

Back to top

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.

Back to top