Natural gas rates for Michigan farms

Who is this rate for?

Commercial and Industrial Firm Natural Gas Service is for:

  • Farms, businesses, schools, government facilities, and
  • Buildings where two or more households are served through a single meter.

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How reliable is my natural gas service?

Commercial and Industrial Firm Natural Gas Service provides uninterrupted service for your operation, 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 severe storm or a contractor digging into a gas line) that make it impossible to deliver gas to you. When this happens, WPS responds immediately to restore service.

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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 — or the number of therms used. 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) your business 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.

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What charges are involved?

Each month your bill for gas service includes:

  • Distribution Charge - covering the cost of delivering gas to your farm on WPS's system. This charge varies with the amount of gas you use each month. Your bill shows the number of gas therms used multiplied by this cost per therm.
  • Gas Cost - covering the estimated cost of gas and all related costs for ensuring a reliable gas supply for our customers. It also includes WPS's contract costs for securing:
    1. Adequate pipeline capacity to transport gas to this service area, and
    2. Adequate storage space for gas until it's needed.
  • The Michigan Public Service Commission approves estimated gas costs. At the end of the year, the commission compares WPS's actual gas costs with the revenue collected from customers. The commission determines if too much or too little was collected and considers this information as it sets gas costs that WPS may charge for the next year.
  • WPS's annual estimated costs are spread out evenly over 12 months and listed as the Gas Cost on your bill. This charge varies with the amount of gas you use. You pay $0.45 per therm for the gas you use.
  • Fixed Charge - a charge that doesn't vary with the amount of electricity you use. The Fixed Charge covers the cost of providing safe, reliable electric service. For example, it includes the cost of WPS owning, maintaining and operating equipment that generates and delivers electricity to your farm, as well as the costs of providing customer service. The Fixed Charge is the minimum amount you will be billed each month.

Commercial and Industrial Firm Natural Gas Service

Annual natural gas usage (customer class*) Type of customer Fixed Charge Local Distribution Service rate
Up to 10,000 therms (Cg-SM) Year-round
(12-month)		 $7.50 per month $0.08514 per therm
Seasonal**
(6-month)		 $15.00 per month
More than 10,000 therms (Cg-LM) Year-round
(12-month)		 $72.00 per month $0.06214 per therm

* WPS's existing and new customers qualify for these rates if they are not subject to the incremental pricing provision of the Natural Gas Policy Act of 1978.

** If your seasonal facility is used during the summer months, you'll be billed for gas service May through Oct. If your seasonal facility is used during the winter months, you'll be billed for gas service Nov. through Apr. 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 during the off-season.

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.

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