Natural Gas Rates for Residential Customers in Michigan
- Who is This Rate For?
- How Reliable is the Service These Rates Provide?
- How is the Gas I Use Measured?
- What Charges Are Involved?
- How Much is the Customer Charge?
Who is This Rate For?
The Natural Gas Rate for Residential Service is designed to serve:
- your single-family home, or
- your apartment if it has its own meter
If you live in an apartment, condominium or other building where two or more units are served by one meter, the Natural Gas Rates for Businesses in Michigan applies.
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 natural 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 severe storm or a contractor digging into a gas line), that make it impossible to deliver gas to your home. When this happens, WPS responds immediately to restore service.
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 (Btu). 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. WPS determines the heat content of the gas received from our supplier during the 30 days preceding your last meter reading date. The result is shown on your monthly bill.
What Charges Are Involved?
Each month, your gas bill includes these charges:
- Distribution Charge - which covers the cost of delivering gas to your home on WPS's system. This charge varies with the amount of gas you use each month. You pay $0.08564 per therm for this service. Your bill shows the number of therms used multiplied by this cost per therm.
- Gas Cost - which is the estimated cost of gas and all related costs
to ensure a reliable gas supply for our customers. It also includes WPS's
costs to secure:
- enough room on the pipeline to transport gas to this area, and
- enough storage space for the gas until it's needed
The Michigan Public Service Commission approves the estimated Gas Cost found on your bill. At the end of the year, the commission compares WPS's actual gas costs with the revenue we've collected from customers. If too much or too little money was collected, the commission considers this as it sets the Gas Cost we charge during the next year.
These annual estimated costs are spread out evenly over 12 months and listed as Gas Cost on your bill. The charge varies with the amount of gas you use. You pay $0.45 per therm for the gas you use. - Customer Charge - a fixed charge that does not vary with the amount of gas you use. The Customer Charge covers the cost of providing safe, reliable gas service. It includes the cost of WPS owning, maintaining and reading meters; maintaining equipment; and providing service programs and communication services. The Customer Charge is the minimum amount you will be billed each month.
How Much is the Customer Charge?
| Type of Natural Gas Service | Type of Customer | Customer Charge |
|---|---|---|
| Single-family home or apartment with its own meter |
Year-round (12-month) |
$5.00 per month |
| Seasonal* (6-month) |
$10.00 per month |
Several factors can influence your monthly gas use. Major factors that can be measured by WPS are summarized in the lower left-hand corner of your monthly bill.
*If your seasonal facility is used during the summer months, you'll be billed for gas service May through October. If your seasonal facility is used during the winter months, you'll be billed for gas service November through April. Your gas service may remain connected all year. Any incidental gas use during the "off season" will be included on your first bill of the following season. If substantial use of gas is recorded during the "off season," WPS will send you a bill at that time.
See the Michigan Rate Book for more information.