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 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.

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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 $0.29781 per CCF for this service which includes an Energy Waste Reduction Surcharge. Customers also pay a Gas Supply Acquisition Charge of $0.00391 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 $0.41175 per CCF for the gas you use.
  • 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 $0.06592 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 $0.41175 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.
  • Main Replacement Program, a charge to pay for pipeline replacements and related costs.
  • Rate Realignment Adjustment, a charge or credit, as approved by the MPSC, that adjusts Distribution charges to cost-of-service-based charges for all customers.

How much is the customer charge?

Type of residence Daily customer charge Monthly MRP Charge3 Gas cost charge2 Commodity charge1
Single-family home $0.42470 per day $0.00000 $0.41175 $0.71347

1 Includes all surcharges for residential residence.

2 Includes reservation charge.

3 Main Replacement Program charge. (No surcharge in 2024.)

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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