Michigan Rates

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Your business depends on natural gas to be there when you need it. At Michigan Gas Utilities, we're making improvements to ensure that you have a reliable supply of energy for years to come. Of course, these improvements come with a cost. It's likely that our customers will see increasing energy rates for the next several years.

We can't avoid making the changes our customers depend upon. What we can do is manage our costs responsibly — and provide you with the information you need to take control of your energy costs. A good way to start is by understanding the rates you see on your monthly energy bill.

On this site, we'll try to explain your rates in straightforward terms.

Natural Gas Rates for Business Customers in Michigan

Most businesses served by Michigan Gas Utilities receive Commercial and Industrial Firm Natural Gas Service. Commercial and Industrial Firm Natural Gas Service is designed for:

• businesses, schools and government facilities

How Reliable Is the Service This Rate Provides?

Commercial and Industrial Firm Natural Gas Service provides uninterrupted service for your business, 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 your business. When this happens, Michigan Gas Utilities 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). Your bill shows how much gas (Ccf) your business used for the past month.

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 Michigan Gas Utilities 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 securing:
  
  • adequate pipeline capacity to transport gas to this service area, and
  • adequate storage space for gas until it's needed.
  
  Michigan Gas Utilities 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 $0.70400 per Ccf for the gas you use. This is what Michigan Gas Utilities 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 Michigan Gas Utilities 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 Michigan Gas Utilities 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 $3.82 per meter per month and the surcharge for large general service is $77.09 per meter per month.

Charges on Your Gas Bill

Annual Natural Gas Usage (Customer Class)	Type of Customer	Customer Charge**	Local Distribution Service Rate (Ccf)	Gas Cost Charge (Mcf)*	Commodity Charge (Mcf)*
Up to 273,000 Ccf	Year-round (12-month)	$33.82	$0.11500	$7.0400	$7.9500
More than 273,000 Ccf	Year-round (12-month)	$452.09	$0.10000	$7.0400	$7.8000

*Charges occur monthly.

**Charges occur monthly. This includes the Energy Optimization (EO) Surcharges.

Several factors can influence your business's monthly gas use. Major factors that can be measured by Michigan Gas Utilities are summarized in the lower left-hand corner of your monthly bill.