Most businesses served by WPS
receive Commercial and Industrial Firm natural gas service.
Who is this rate for?
Commercial and Industrial Firm natural gas service is for:
- businesses, schools, government facilities, and
- buildings where two or more households are served through a single meter.
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How reliable is my natural gas service?
The natural gas rate for business service provides uninterrupted
service to your business, except in emergencies. This means natural gas is
available to you whenever you need it. The only exception — as with
any gas service — is when unexpected events occur (such as a severe
storm or a contractor digging into a gas line), that make it impossible to
deliver gas to your business. When this happens, WPS responds
immediately to restore service.
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How is the gas I use measured?
The amount of gas flowing through your meter is measured in hundred cubic
feet (CCF). But you are charged based on the average heat content of the gas
delivered to your business — or the number of therms you use. One therm is
equal to 100,000 British Thermal Units (Btu). One Btu represents the amount
of heat needed to raise one pound of water one degree Fahrenheit at sea
Your bill shows how much gas (CCF) you used for the past month and a
calculation that converts the amount of gas used (CCF) to reflect the heat
content of the gas (therms). The heat content of gas may vary. WPS
determines the heat content of the gas received from our supplier during
the 30 days preceding your last meter reading date. The result is shown on
your monthly bill.
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What charges are involved?
Each month your bill for commercial and industrial gas service includes:
- Distribution Charge - which covers the cost of delivering gas to
your business via pipes owned and maintained by WPS. This charge varies with the amount of
gas you use each month. You pay $0.08564 per therm for this service. Your
bill shows the number of therms used multiplied by this cost per therm.
- Gas cost - 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 WPS
The Michigan Public Service Commission approves the estimated gas cost found
on your bill. At the end of the year, the commission compares the actual gas costs incurred by WPS
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 gas
cost we charge during the next year.
- enough room on the pipeline to transport gas to this area, and
- enough storage space for the gas until it's needed
These annual estimated costs are spread out evenly over 12 months and listed
as gas cost on your bill. The charge varies with the amount of gas you use.
You pay $0.45 per therm for the gas you use.
- Fixed Charge - a charge that does not vary with the amount
of gas you use. The Fixed Charge covers the cost of providing safe,
reliable gas service. It includes the cost of WPS owning, maintaining and
reading meters; maintaining equipment; and providing service programs and
communication services. The Fixed Charge is the minimum amount you will be
billed each month.
Charges on your gas bill
|Annual natural gas usage (Customer class)
||Type of customer
||Local Distribution Service rate
|Up to 10,000 therms (Cg-SM)
|$7.50 per month
||$0.08514 per therm
|$15 per month
|More than 10,000 therms (Cg-LM)
|$72 per month
||$0.06214 per therm
* Existing and new WPS
customers qualify for these rates if they are not subject to the incremental pricing
provision of the Natural Gas Policy Act of 1978.
** If your seasonal facility is used during the summer
months, you'll be billed for gas service May through Oct. If your seasonal
facility is used during the winter months, you'll be billed for gas service
Nov. through Apr. Your gas service may remain connected all year. Any
incidental gas use during the "off season" will be included on your first bill
of the following season. If substantial use of gas is recorded during the "off
season," WPS will send
you a bill at that time.
Several factors can influence your monthly gas use. Major factors
that can be measured by WPS are
summarized in the lower left-hand corner of your monthly bill.
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