Michigan natural gas rates

Michigan customers: Beginning Jan. 1, 2017, Upper Michigan Energy Resources Corp. (UMERC) became the energy provider for WPS's Michigan customers. UMERC was formed with the approval of the Michigan Public Service Commission (MPSC) and serves the former Wisconsin Public Service and We Energies customers in Michigan's Upper Peninsula. UMERC is a subsidiary of WEC Energy Group, the parent company of WPS and We Energies, and is regulated by the MPSC.

Who is this rate for?

The natural gas rate for residential service is for customers who live in:

  • single-family homes, or
  • apartments with separate gas meters.

If you live in an apartment, condominium or other building where two or more units are served by one meter, the natural gas rates applies for businesses in Michigan rates.

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How reliable is my natural gas service?

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 contractor digging into a gas line), that make it impossible to deliver gas to your home. When this happens, WPS 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). But you are charged based on the average heat content of the gas delivered to your home — or the number of therms you use. One therm is equal to 100,000 British Thermal Units (Btus). One Btu represents the amount of heat needed to raise one pound of water one degree Fahrenheit at sea level.

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 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 gas bill includes these charges:

  • Distribution Charge - which covers the cost of delivering gas to your home on the WPS system. 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.
  • Natural 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 the 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 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.
     
    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.

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How much is the Fixed Charge?

Type of natural gas service Type of customer Fixed Charge
Single-family home or
apartment with its own meter		 Year-round
(12-month)		 $5.00 per month
Seasonal*
(6-month)		 $10.00 per month

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.

* If your seasonal facility is used during the summer months, you'll be billed for gas service May through October. If your seasonal facility is used during the winter months, you'll be billed for gas service November through April. 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.

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