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Terms and Conditions of the Natural Gas Fixed Bill 2009-2010 Program Year
- The natural gas Fixed Bill program offered by Wisconsin
Public Service (WPS) is regulated by the Public Service
Commission of Wisconsin. Fixed Bills are subject to the provisions
of the Fixed Bill pilot program tariff on file with the Public Service
Commission of Wisconsin. The program is designed to provide
monthly natural gas bills that are predictable and guaranteed,
for a fee. Because this is a pilot program, WPS reserves the right
to end the program at any time.
- Participants pay a fixed natural gas bill for 12 months.
End-of-year balance is $0. If you enroll, you will pay your Fixed
Bill amount for 12 months. During the program year, your
Fixed Bill amount will not increase. At the end of the program
year, there are no adjustments and no balances or credits to
carry forward due to natural gas price changes or temperature
conditions causing natural gas usage changes. You must
participate in the program for 12 months. To avoid paying an exit
fee and adjustment amount, you must participate at the same
service address with the same usage patterns and keep your
payments current (see sections 7 and 9). In the event WPS must
change your bill due date during the program, your payment
amount may be prorated. At the end of the program year, you
will receive a new Fixed Bill amount (calculation description in
section 5) prior to the start of the new program year. You will be
renewed automatically unless you notify WPS before the due
date of your first new Fixed Bill amount that you want to end
participation with the new program year.
- Limited eligibility and enrollment. Residential and
small business customers are eligible if they have sufficient
temperature-related use and meet WPS credit and program
requirements. Enrollment is available to a limited number of
customers who enroll by, and remain enrolled through, October
19, 2009, or such other time as WPS determines.
- Fixed Bill is a voluntary billing option and is different
from other billing options such as Budget Billing. There
are no price or usage adjustments, so based on temperatures
and natural gas prices during the year, you may pay more or
less under this option compared to standard service or Budget
Billing. For example, if there are mild or normal temperatures
and/or lower natural gas prices, your energy costs will most
likely be higher under Fixed Bill than under other options, but
if there are severe temperatures and/or higher prices, your
natural gas costs will most likely be lower under Fixed Bill than
other options. For your convenience, the comparison chart
below shows historical heating season conditions compared to
”normal” weather conditions, and also shows monthly high and
low natural gas prices over the past several years. Please keep
in mind that past weather and gas prices are not predictors of
future weather and gas prices. Therefore, it may not be useful to
compare last year’s bills with your Fixed Bill quote.
- Fixed Bill covers natural gas charges. Your Fixed Bill
covers natural gas charges including commodity, delivery,
monthly fixed charges and program fee. Your Fixed Bill amount
will depend on your historic natural gas use patterns. First, we
analyze how much natural gas you use at different temperatures.
Then we use the normal temperatures in your area to project your
natural gas use for each of the next 12 months. We then lock in
a fixed price for natural gas and add the Fixed Bill program fee
to provide you with a fixed and guaranteed amount. The Fixed
Bill program fee equals 7 percent of natural gas charges. This
program fee is an additional charge to what you would pay
under other service and billing options.
- Fixed Bill does not include state and local taxes, but they
will be billed as applicable. Other program fees or credits are
not included.
- Maintaining historic natural gas usage patterns. Increased
natural gas use due to variations from normal temperatures
is expected and covered under this program. However,
customers agree to continue to use natural gas as they have
in the past. Examples that can cause great impact on usage
include increasing your living space, changing your thermostat
setting to one other than used in the past, adding new major
appliances without removing old ones, or adding heated spas
or pools. If your increased natural gas use does not appear
to be due to temperatures, then WPS may notify you. If your
natural gas use is 15% or more greater than your past annual
use for two consecutive months, then WPS has the right to
remove you from the Fixed Bill program. If you are removed
from the program for this reason, an exit fee and adjustment
amount will apply as outlined in section 9. Rest assured, WPS
will NOT remove you from the program without giving you prior
notification.
- Conservation incentives and discounts. Participants
who install certain conservation measures may be eligible for a
discount in their monthly Fixed Bill amount. The conservation
measures and discounts are: a 10% discount for installing
a qualifying furnace or boiler; a 5% discount for installing a
qualifying water heater; a 10% discount for installing qualifying
insulation and air sealing; and a 3% discount for installing
qualifying windows and doors. In instances where multiple
conservation measures are installed, the maximum total
discount is 15% during one program year. Current participants
who install a qualifying conservation measure prior to March
1 of the current program year will receive the discount for the
remainder of the current program year. Current participants that
are accepted for re-enrollment in the next program year who
install a qualifying conservation measure between March 1 and
the end of the current program year will receive the discount for
the entire term of the next program year. In order to qualify for
some of these discounts on your Fixed Bill, you must meet certain
criteria established by the Focus on Energy (Focus) program, as
described below. (Focus is Wisconsin’s program which works
with residents and businesses to install cost-effective energy
efficiency measures.) In order to receive the Fixed Bill discount
for a furnace, boiler or water heater, you must provide a paid
invoice or other documentation acceptable to Focus and the
equipment must qualify for a Focus Cash-Back Reward or a
Focus Targeted Home Performance equipment replacement at
the time of installation. In order to receive the Fixed Bill discount
for insulation and air sealing, you must complete a Focus Home
Performance or Targeted Home Performance assessment, plus
install the top two recommended insulation and air sealing
measures which must qualify for Focus financial incentives at the
time of installation. In order to receive the Fixed Bill discount for
windows and doors you must present a paid invoice for at least
3 windows and/or doors which must qualify for a federal energy
efficiency tax credit at the time of installation.
- WPS has the right to remove you from the program
if you move, allow your bill to become delinquent, or
increase your non-temperature-related use by 15 percent
or more for two consecutive months (see section 7).
If you are removed from the program because you move,
allow your bill to become delinquent, or increase your nontemperature-
related use, you will incur a $50 exit fee and
adjustment amount. The adjustment amount is the difference
between the amount paid on the Fixed Bill and an amount
calculated by multiplying your actual usage while enrolled,
times the total fixed unit price used to calculate your Fixed Bill
quote, plus the customer charge (which all customers pay) and
the program fee for the months you were on the program. If
you are removed from the program early in the program year,
the adjustment amount is likely to be a payment you owe WPS.
WPS may allow customers to leave the program without an
exit fee under extreme hardship conditions. However, such
customers will still be responsible for the adjustment amount.
- Fixed Bill is a 12-month agreement. Enrolled customers
agree to participate in the Fixed Bill program for 12 months.
Customers may only opt out of the 2009-2010 program year
before the due date of their first Fixed Bill. Customers who
opt out of the program before this date will be billed for usage
under standard service and no exit fee will be charged.
- Automatic renewal. Participants will be mailed
a renewal letter toward the end of the program year. If the
participant remains eligible, the letter will include a newly
calculated natural gas Fixed Bill amount for the next 12 months.
Participation will continue automatically unless the customer
requests cancellation. Such cancellation must occur by the due
date of the customer’s first Fixed Bill.