Natural gas is an important part of everyday life. So it's nice to know that
you can rely on MGU to keep
your business 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
Who is this rate for?
Most businesses served by MGU receive Commercial
and Industrial Firm Natural Gas Service. Commercial and Industrial Firm Natural
Gas Service is designed for businesses, schools and government facilities.
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How reliable is my natural gas service?
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 business. When this happens,
MGU responds immediately to restore service.
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How is the natural gas I use measured?
The amount of gas flowing through your meter is measured in hundred cubic feet
(CCF). Your bill shows how much gas (CCF) your business used for the past month.
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What charges are involved?
Each month your bill for commercial and industrial gas service includes:
- Distribution Charge, covering the cost of delivering gas to your business on
the MGU system. This charge varies with the amount of gas
you use each month. Your bill shows the volume of gas used multiplied by this
cost. See the table below for current rates for Local Distribution Service.
- Gas Cost, covering the estimated cost of gas and all related costs for
ensuring a reliable gas supply for our customers. It also includes contract costs for
- adequate pipeline capacity to transport gas to this service area, and
- adequate storage space for gas until it's needed.
MGU 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 $0.41507 per CCF for the gas you use. This is
what MGU pays for the gas — we do not mark up or profit
from the price of gas.
The Michigan Public Service Commission approves estimated Gas Costs. At the end
of the year, the commission compares 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 MGU
may charge for the next year.
- 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 MGU 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. See the table below for current Customer Charge amounts.
- Energy Optimization (EO) Surcharges are required by Public Act 295, as detailed below:
- This charge permits, pursuant to Section 91(4) of 2008 PA 295, the adjustment of rates, to allow for recovery of the payments made by the Company in compliance with Section 91(1) of 2008 PA 295.
- The Energy Optimization (EO) Surcharge for small general service is $4.39 per meter per month and the surcharge for large general service is $109.03 per meter per month.
- Reservation Charge, this charge allows for the recovery of costs
related to the assets necessary to provide peak-day coverage and for
MGU to serve as
the "supplier of last resort", as required by the Commission in Case No. U-15929.
The current Reservation Charge is $0.08268 per CCF. For GCR purposes, the
Reservation Charge is a component of the Base GCR factor. This Reservation Charge
is included in the Gas Cost Charge of $0.41507 per CCF.
Charges on your gas bill
|Annual natural gas usage (Customer Class)1
||Type of customer
||Daily customer charge
||Local distribution service rate4
||Gas cost charge3
|Small general service
|Large general service
1 Charges occur monthly.
2 Charges occur monthly. This includes all surcharges.
3 Includes Reservation Charge.
4 Includes Gas Supply Acquisition Charge plus Distribution Rate.
Several factors can influence your business's monthly gas use.
Major factors that can be measured
by MGU are summarized in the lower left-hand corner of
your monthly bill.
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