Michigan Natural Gas Rates
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 natural gas costs. A good way to start is by understanding the rates you see on your monthly gas bill.
- Who is this rate for?
- How reliable is my natural gas service?
- How is the natural gas I use measured?
- What charges are involved?
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
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.
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.
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 $0.15987 per CCF for this service. Those with multi-family units pay $0.11929 or $0.10629 per CCF depending upon their meter class. Your bill shows the number of CCF used multiplied by this cost per CCF.
- Gas Cost Recovery Factor, or 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:
- enough room on the pipeline to transport gas to this area, and
- enough storage space for the gas until it's needed.
As a residential customer, you pay $0.70492 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 $0.01239 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.
How Much Is the Customer Charge?
| Type of Residence | Monthly Customer Charge | Gas Cost Charge (MCF) | Commodity Charge (MCF)** |
|---|---|---|---|
| Single-Family Home | $11.00 per month | $7.0492 | $8.7718 |
| Multi-Family - Meter Class I* | $11.00 per month | $7.0492 | $8.3660 |
| Multi-Family - Meter Class II* | $33.00 per month | $7.0492 | $8.3660 |
| Multi-Family - Meter Class III* | $88.00 per month | $7.0492 | $8.2360 |
| Multi-Family - Meter Class IV* | $143.00 per month | $7.0492 | $8.2360 |
*"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.
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.