Natural gas is an important part of everyday life. So it's nice to know that you can rely on MGU to keep your home 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 gas bill.

Who Is This Rate For?

The Natural Gas Rate for Residential Service applies to customers who live in single-family homes, or multi-family units.

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How Reliable Is My Natural Gas Service?

Natural gas is available to you whenever you need it. The only exception is when an unexpected event occurs (such as a contractor digging into a gas line), that makes it impossible to deliver gas to your home. 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) you used for the past month.

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What Charges Are Involved?

Each month, your gas bill includes these charges:

  • Distribution Charge, which covers the cost of delivering gas to your home on the MGU system. This charge varies with the amount of gas you use each month. Customers with single-family homes pay $0.15945 per CCF for this service. Those with multi-family units pay $0.12243 per CCF. Your bill shows the number of CCF used multiplied by this cost per CCF.
  • Gas Cost Recovery Factor (GCR), which is the estimated cost of gas and all related costs to ensure a reliable gas supply for our customers. It also includes costs incurred by MGU to secure:
    1. enough room on the pipeline to transport gas to this area, and
    2. enough storage space for the gas until it's needed.
    The Michigan Public Service Commission approves the GCR found on your bill. At the end of the year, the Commission compares actual gas costs with the revenue we've collected from customers. If too much or too little money was collected, the Commission considers this as it sets the GCR we charge during the next year.
     
    As a residential customer, you pay $0.49691 per CCF for the gas you use.
  • 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 residential and multi-family residence is $0.01624 per CCF.
  • 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 $0.04691 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 $0.49691 per CCF.
  • Total Commodity Charge, which is the total of the Distribution Charge and the Gas Cost Recover Factor per CCF.
  • 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.
  • Decoupling Adjustment, applied on a service-rendered basis each month and will continue to appear on your bill for approximately one year or until MGU recovers the revenue shortfall approved by the MPSC.
  • Uncollectible Adjustment, allows MGU to recover or refund customers 80% of the difference between the amount of uncollectible expense included in MGU's rates and the actual uncollectible expense for the prior year.

How Much Is The Customer Charge?

Type of Residence Customer Charge Gas Cost Charge*** Commodity Charge**
Single-Family Home $12.00 per month $0.49691 $0.65851
Multi-Family - Meter Class I* $12.00 per month $0.49691 $0.64234

* "Meter class" refers to the size of the gas meter serving the building and the volume of gas running through it.

** Includes Energy Optimization (EO) Surcharge for residential and multi-family residence.

*** Includes Reservation Charge.

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.

See the Rate Book for more information.

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