Commercial and Industrial Gas Rates

MGE is serious about our responsibility to provide safe, reliable natural gas service at competitive prices. We work hard to control our costs. In 2018, MGE worked with intervening parties to file a rate settlement agreement to resolve all issues in MGE's rate case. The Public Service Commission of Wisconsin (PSCW) reviewed and approved the settlement agreement, setting our electric and gas rates in Docket 3270-UR-122.

The approved natural gas distribution and gas supply service rates reflect an overall increase of about 1.06% across all customers in 2019. This increase covers infrastructure improvements to maintain a reliable system. It also reflects the impacts of the 2017 Tax Cuts and Jobs Acts. Your actual bill depends on your rate classification and usage. Natural gas rates will also increase slightly in 2020.

Natural gas rates are separated into two components: Distribution Service and Gas Supply Service. The separation allows you to choose the type of service that’s right for your business.

The following natural gas rates are for services rendered on and after January 1, 2019.

These rates are subject to market variables that may change monthly. Please consult your bill for the most current applicable rates.

Distribution service

Rate Classification
(C&I = Commercial and Industrial)
Small C&I Distribution Service (GSD-1)
System connection and customer service charge per day $0.8000
All therms $0.1510
Medium C&I Distribution Service (GSD-2)  
System connection and customer service charge per day $3.7196
All therms $0.1140
Large C&I Distribution Service (GSD-3)  
System connection and customer service charge per day $26.50
All therms $0.0755
Large C&I Demand-Based Distribution Service Pilot (GSD-3D)  
System connection and customer service charge per day $26.50
All therms $0.0385
Demand-based billing determinant $0.0148
Interruptible Generation Distribution Service (IGD-1)  
System connection and customer service charge per day $150.00
All therms $0.0325
Seasonal Use Distribution Service (SUDS-1)  
System connection and customer service charge per day $1.50
Distribution rates per cycle bill:  
- Distribution service per therm (first 2,000 therms) $0.1242
- Distribution service per therm (next 18,000 therms) $0.1140
- Distribution service per therm (all therms > 20,000 therms) $0.1071
Contracted Distribution Service (CDS-1)  
System connection and customer service charge per day NA
All therms NA
Steam and Power Generation Gas Distribution Service (Sp-1)  
System connection and customer service charge per day $2,500.00
All therms $0.0365

Natural gas supply services

Rate Classification
Firm Gas Sales Service (FS-1)  
Administrative charge per therm:  
- GSD-1, RD-1, $0.0144
- GSD-2 $0.0119
- GSD-3 $0.0094
All therms $0.4696
Interruptible Gas Sales Service (IS-1)  
Administrative charge per therm:  
- GSD-1, SUDS-1 $0.0144
- GSD-2 $0.0119
- GSD-3 $0.0094
Telemetering charge per day $1.50
All therms $0.3675
Interruptible Large Boiler Gas Sales Service (IS-2)  
Administrative charge per day $50.00
Telemetering charge per day $1.50
All therms $0.3572
Large Annual Use Gas Sales Service (LS-1)  
Administrative charge per day $80.00
Electronic metering charge per day $1.50
Natural gas service, firm $0.4419
Natural gas service, interruptible $0.4227
Daily Balancing Service (DBS-1)  
Administrative charge per day $4.30
Telemetering charge per day $1.50
Balancing service charge, first tier $0.03088
Balancing service charge, second tier $0.03555
Backup Sales Service (BU-1)  
Administrative charge per therm:  
- GSD-1 $0.0144
- GSD-2 $0.0119
- GSD-3 $0.0094
All therms $0.4696
Total Charges for Business Customers With Firm
or Interruptible Natural Gas Supply

(These are combined charges from the components listed above)
Distribution Rate Supply
Rate
Per-Day Charges Per-Therm Charges
GSD-1 FS-1 $0.8000 $0.6350
GSD-2 FS-1 $3.7196 $0.5955
  IS-1 $5.2196 $0.4934
GSD-3 FS-1 $26.50 $0.5545
  IS-1 $28.00 $0.4524
SUDS-1 IS-1
(First 2,000 therms)
$1.50 $0.5061
  IS-1
(Next 18,000 therms)
$1.50 $0.4959
  IS-1
(>20,000 therms)
$1.50 $0.4890
IGD IS-2 $201.50 $0.3897
SP-1 LS-1 (firm) $2,581.50 $0.4784
SP-1 LS-1 (interruptible) $2,581.50 $0.4592

GSD-1: Distribution rate for customers using less than 25,000 therms per year.
GSD-2: Distribution rate for customers using 25,000 to 200,000 therms per year.
GSD-3: Distribution rate for customers using more than 200,000 therms per year.
natural gas during the off-peak period of April 1 through Dec. 31.
SP-1: Supply rate for customers on a firm basis who use at least 17 million therms per year.
FS-1: Supply rate for customers receiving firm natural gas supply service.
IS-1: Supply rate for customers receiving interruptible natural gas supply service.
LS-1: Supply rate for large annual use customers who receive distribution service under Rate Schedules SP-1 and IGD-1.

Balancing service (DBS-1) monthly cashout rates

Effective for the monthly cashout of imbalances incurred in December 2018.

Overtake Cashout Price
Imbalance Ranges Price Per Therm for
Month-End Imbalances
Over 0% through 3.5% $0.4433
Over 3.5% through 10% $0.5098
Over 10% through 15% $0.5763
Over 15% through 20% $0.6206
Over 20% $0.6649
Undertake Cashout Credit
Imbalance Ranges Price Per Therm for
Month-End Imbalances
Over 0% through 3.5% $0.3844
Over 3.5% through 10% $0.3268
Over 10% through 15% $0.2691
Over 15% through 20% $0.2307
Over 20% $0.1922

For more information