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Terms and Conditions of the Natural Gas Fixed Bill 2007-2008 Program Year

  1. 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.
  2. 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.
  3. 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, 2007, or such other time as WPS determines.
  4. 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.
  5. 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.
  6. Fixed Bill does not include state and local taxes, but they will be billed as applicable. Other programs fees or credits are not included.
  7. 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.
  8. Efficiency rewards. At the end of each program year, your natural gas use patterns are analyzed. If your natural gas use patterns decrease (for example, installing a new high-efficiency gas furnace could decrease your natural gas use pattern), the decrease is reflected in the Fixed Bill amount for the next year. Additionally, if you participate in the 2007-2008 natural gas Fixed Bill program year and install a more efficient gas heating system after March 1, 2007, you may be eligible for a 10 percent discount in all future monthly natural gas Fixed Bill amounts for the 2007-2008 program year. A qualifying heating system is a furnace that has a 92 percent AFUE rating or higher, or a boiler that has an 85 percent AFUE rating or higher. To receive the discount, you must notify WPS and provide the year, model and serial number of the equipment replaced, and proof of installation from an authorized heating system installer. If approved by WPS, the efficiency discount will then be applied to remaining monthly Fixed Bill amounts.
  9. 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 non-temperature-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) 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.
  10. 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 2007-2008 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 as if they were never enrolled in the program, and no exit fee will be charged.
  11. 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.