Transportation Rates & Services
Determining Rate Class
Our rate classifications are based on the way customer groups use natural gas and the impact of their use on the operation and maintenance of our system. Factors that are considered include annual load (how much natural gas is used during the year) and load factor (how uniform the use is throughout the year). If your use remains fairly constant throughout the year, you have a high load factor. If your use rises and falls throughout the year, your load factor is low.
Your Rates Options
Rate 4 - General Service
Rate 4 - General Service
Rate 4 is appropriate for commercial and industrial customers with annual use up to 800,000 therms. Rate 4 sales service customers purchase all natural gas supplies from Nicor Gas.
Rate 4 with Customer Select
Certain Rate 4 customers may find the Customer Select® program to be advantageous. Through this program, customers can select from a number of natural gas suppliers offering this service. Program participants continue to pay the Nicor Gas delivery charges because we continue to deliver the gas, but do not pay the Nicor Gas gas supply cost because their gas supplies are provided by a third party.
However, a portion of the Nicor Gas gas supply cost is used to provide this service. Therefore, participating customers pay a Customer Select® Charge (see Glossary of Terms) to recover this cost. Additionally, Customer Select® customers receive a Transportation Service Credit (therms X -$0.0033) for costs normally incurred by Nicor Gas sales service customers that are not incurred by Customer Select® customers. Both items are per therm charges or credits applied to the monthly use of the customer.
Rate 5 - Seasonal Use Service
Rate 5 - Seasonal Use Service
Rate 5 is available to customers that use less than five percent of their annual gas consumption during the billing months ending January 1 through April 30. Examples of this type of customer would include a farm with grain dryers or an asphalt plant. These customers have the same storage and backup service options as those shown for Rate 4. Their usage is limited to 700,000 therms annually.
Rate 5 with Customer Select®
The customer profile is the same as Rate 5 – Seasonal Use Service. However, certain Rate 5 customers may find the options offered by Customer Select® to be advantageous. See Rate 4 with Customer Select® for program details.
Rate 6 - Large Volume General Service
Rate 6 - Large Volume General Service
Rate 6 is economical for large commercial and industrial customers with annual loads greater than 800,000 therms and high load factors. This rate has a minimum bill of $7,100 excluding gas commodity costs. Customers purchase all natural gas supplies from Nicor Gas.
Rate 7 - Large Volume Service
Rate 7 - Large Volume Service
Our largest customers with a monthly use greater than 800,000 therms may find this rate the most economical. Rate 7 has a minimum monthly bill of $20,300 excluding gas commodity costs and is dependent on load factor because it has a demand charge based on the highest daily use in the month and a distribution charge for each metered therm. We can provide a detailed analysis that will determine whether Rate 6 or Rate 7 is more appropriate.
Rate 74 - General Transportation Service
The customer profile is the same as Rate 4 – General Service. However, these customers arrange for gas purchases from another source and contract with Nicor Gas for varying amounts of storage options. Rate 74 is considered an "unbundled" rate because you can select your storage levels.
Rate 75 - Seasonal Use Transportation Service
Rate 75 provides unbundled transportation service similar to Rate 74, but is intended for seasonal use customers (see Rate 5) that use less than five percent of their annual gas consumption from December through March and purchase their gas from another source.
Rate 76 - Large General Transportation Service
Rate 76 provides unbundled transportation service similar to Rate 74, but for Rate 6 profile customers. This rate has a minimum bill of $6,000 excluding gas commodity costs.
Rate 77 - Large Volume Transportation Service
Rate 77 provides unbundled transportation service similar to Rate 74, but is intended for Rate 7 profile customers. This rate has a minimum bill of $24,000 excluding gas commodity costs.
Transportation Services
Nicor Gas offers a variety of rates and services to meet your natural gas needs.
Learn more about the services Nicor Gas has to offerChoosing Transportation Rates and Services
|
Rate |
Annual Therm Use |
Nicor Gas provides gas supplies |
Marketer provides gas supplies |
Nicor Gas provides storage |
Minimum bill excluding gas commodity cost |
|
4 |
less than 800,000 |
X |
|
|
|
|
4 w/Customer Select |
less than 800,000 |
|
X |
|
|
|
|
|
|
|
|
|
|
74 |
less than 800,000 |
|
X |
X |
|
|
5 |
700,000 therms maximum annually – Less than 5% used during billing months January through April |
X |
|
|
|
|
5 w/Customer Select |
700,000 therms maximum annually – Less than 5% used during billing months January through April |
|
X |
|
|
|
|
|
|
|
|
|
|
75 |
700,000 therms maximum annually – Less than 5% used December through March |
|
X |
X |
|
|
6 |
more than 800,000 but less than |
X |
|
|
$7,100 |
|
|
|
|
|
|
|
|
76 |
more than 800,000 but less than |
|
X |
X |
$6,000 |
|
7 |
10 million |
X |
|
|
$20,300 |
|
|
|
|
|
|
|
|
77 |
10 million |
|
X |
X |
$24,000 |
Rates and Services FAQ
How will I be notified of a Critical Day?
Notice of a Critical Day will be posted on the Company's electronic bulletin board and via a recorded dial-in message. A courtesy e-mail notification will be made to customers requesting such notification and providing appropriate contact information. However, failure to receive e-mail notification shall not reduce the customer’s obligations to comply with the Critical Day.
How much company-supplied gas is available to me on a Critical Day?
Company supplies are available under SBS. If you have less gas in storage than your withdrawal rights stipulate, the company will supply the difference as Authorized Use. Any gas used in excess of these quantities will be Unauthorized Use and are subject to the $6.00 per therm charge.
How will my Maximum Daily Contract Quantity (MDCQ) be determined?
The MDCQ will be the greater of the highest daily therm use from the previous year or the result of a regression analysis to a peak day on the previous year's winter use. The MDCQ is subject to Nicor Gas' approval. If daily information is not available, the following formula applies:
(Peak Billing Period Therms x 30) / (Billing Period Days x 21)
When will the MDCQ be determined?
Nicor Gas determines a customer's MDCQ each year based on the previous calendar year. The customer is notified by April 1 of their new MDCQ that becomes effective May 1. If the "new" MDCQ is within five percent of the current MDCQ, no change will be made.
