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
Who Is This Rate For?
The Natural Gas Rate for Residential Service applies to customers who live in single-family homes.
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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
$0.15871 per CCF for this service. Customers also pay a Gas Supply Acquisition
Charge of $0.00790 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
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
- 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 $0.34268 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 $0.08268 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 $0.34268 per CCF.
- Total Commodity Charge, which is the total of the Distribution Charge and the Gas Cost Recover Factor per CCF and all applicable surcharges.
- 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
||Daily Customer Charge
||Gas Cost Charge2
||$0.42740 per day
1 Includes all surcharges for residential residence.
2 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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