Michigan Rates

Natural gas is an important part of everyday life. So it's nice to know that you can rely on Michigan Gas Utilities 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.

Natural Gas Rates for Residential Customers

The Natural Gas Rate for Residential Service is designed to serve:

• your single-family home, or
• multi-family units

How Reliable Is the Service This Rate Provides?

The Natural Gas Rate for Residential Service provides uninterrupted service to your home, except in emergencies. This means 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, 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) 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 Michigan Gas Utilities system. This charge varies with the amount of gas you use each month. Customers with single-family homes pay $0.15333 per Ccf for this service. Those with multi-family units pay $0.11500 or $0.10500 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 Michigan Gas Utilities' costs 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 $0.70400 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 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.

How Much Is the Customer Charge?

Type of Residence	Monthly Customer Charge	Gas Cost Charge (Mcf)	Commodity Charge (Mcf)**
Single-Family Home	$10.00 per month	$7.0400	$8.6972
Multi-Family - Meter Class I*	$10.00 per month	$7.0400	$8.3139
Multi-Family - Meter Class II*	$30.00 per month	$7.0400	$8.3139
Multi-Family - Meter Class III*	$80.00 per month	$7.0400	$8.2139
Multi-Family - Meter Class IV*	$130.00 per month	$7.0400	$8.2139

*"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 Michigan Gas Utilities are summarized in the lower left-hand corner of your monthly bill.

See the Rate Book for more information.