Natural gas is an important part of everyday life. So it's nice to know that you
can rely on Peoples Gas to keep your
business 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.
Available rates
- Rate 2 - General Service: For general service to multi-family,
commercial and industrial customers using an average of 41,000 therms or less per month.
- Rate 4 - Large Volume Demand Service: For large volume
business customers using an average of more than 41,000 therms per month.
- Rate 5 - Electric Generation: Designed for businesses that generate in excess of
25 MW of electricity using natural gas and sell all or part of that electricity off-system.
For more information, please email Gas Transportation Services
or call 800-264-8026.
- Rate 8 - Compressed Natural Gas: For businesses using natural gas in the
form of compressed natural gas.
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Summary of charges for Rate 2
Sales customers are customers that purchase natural gas directly from
Peoples Gas under Rate 2 – General Service only.
Transportation customers are customers who take service under Rate 2 and purchase gas from
an alternate supplier under Rider CFY (Choices for You), Rider FST (Full Standby Transportation)
or Rider SST (Subscription Storage Transportation).
The following charges appear on your monthly gas bill:
Delivery charge
The delivery charge is made up of a customer charge, volumetric distribution
charges and a storage charge.
Customer charge
The customer charge covers many of the fixed costs to deliver safe and reliable
natural gas. These costs exist regardless of how much gas a customer uses. Fixed
costs include expenses related to:
- Natural gas mains and other infrastructure that is required to deliver gas
- Labor required to maintain the gas main
- Labor and supplies to read the meter
- Qualified people to respond to gas emergencies
The volumetric distribution charge on your bill varies each month based on how many
therms of gas you use. The storage charge covers some of the costs associated with
the storage of natural gas.
Delivery charges on your gas bill
| Type of customer |
Meter class |
Customer charge* |
| Sales |
Meter Class 1 (700 CFH or less) |
$49.81 |
| Meter Class 2 (701 - 3,000 CFH) |
$156.04 |
| Meter Class 3 (Over 3,000 CFH) |
$348.12 |
| Transportation |
Meter Class 1 (700 CFH or less) |
$49.81 |
| Meter Class 2 (701 - 3,000 CFH) |
$156.04 |
| Meter Class 3 (Over 3,000 CFH) |
$348.12 |
* Excludes charges set by the State of Illinois to fund
weatherization, energy assistance, renewable energy grants, adjustments allowed by
Illinois Public Acts 96-0033 and 99-0906.
| Volumetric distribution charge (sales and transportation customers) |
| First 5,000 therms |
$0.25104 |
| Over 5,000 therms |
$0.19061 |
| Storage charge** |
For sales customers
storage service charge |
$0.08795/therm |
For transportation customers
storage banking charge |
$0.00997/capacity therm |
** Storage charge is subject to change in June and August.
Gas charge
The gas charge is for the purchase, transportation and storage of gas, as well as
the price management of gas supplies for our customers. This charge includes the
actual price we pay to purchase gas from suppliers, including the costs of interstate
pipeline transportation and storage services (these charges vary each month, depending
on the market price of natural gas).
| Month |
Price per therm |
| November 2024 |
$0.3212 |
| October 2024 |
$0.3006 |
| November 2023 |
$0.3871 |
Note: Peoples Gas
does not profit from the price of gas, which appears on your bill as the
Gas Charge. This charge reflects Peoples Gas'
actual cost for gas.
See a list of Historical gas charges.
Peoples Gas Energy Efficiency Program
Each month, your bill may include a charge that
pays for the costs related to energy efficiency and on-bill financing programs mandated
by Illinois Public Act 96-0033. The programs offer incentives for customers to make
energy-saving improvements to their businesses.
Environmental charge
A charge that pays for the cleanup from past manufactured gas operations.
Uncollectible expense adjustment – gas costs
This adjustment applies to Sales Customers only. A factor of 0.0109 applied to the gas
charge on your bill to pay for gas supply-related uncollectible accounts expenses.
Volume balancing adjustment
This tool, which we calculate annually, separates the amount we charge to deliver gas
from customers' energy use and taxes. Generally, when weather is colder than normal,
customers will receive a credit and when it's warmer than normal, customers will receive a
charge. The adjustment relates only to the cost for delivering gas to you. It does not in
any way affect charges for the gas you use.
Qualified infrastructure plant charge
A percentage filed monthly with the ICC that pays for the costs of qualified infrastructure
investments allowed by Illinois Public Act 98-0057.
Storage gas charge
A per capacity therm charge assessed to Choices for You Transportation customers and
Subscription Storage Transportation customers to pay for gas cost-related storage expenses.
Hub credit gas charge
A separate per therm adjustment filed monthly with the ICC related to interstate storage and transportation services.
Taxes
- Chicago municipal tax: imposed by the city of Chicago.
- State tax (Illinois gross revenue tax): mandated by the
state of Illinois to fund the Illinois Commerce Commission.
- State gas revenue tax: either 5 percent of current charges before
taxes or 2.4 cents per therm, whichever is lower.
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Summary of charges for Rate 4
Sales Customers are customers that purchase natural gas directly from
Peoples Gas under Rate 4 – Large Volume Demand Service only.
Transportation Customers are customers who take service under Rate 4 and purchase
gas from an alternate supplier under Rider FST (Full Standby Transportation) or
Rider SST (Subscription Storage Transportation).
The following charges appear on your monthly gas bill:
Delivery charge
The delivery charge is made up of a customer charge, volumetric distribution charges and a storage charge.
Customer charge
The customer charge covers many of the fixed costs to deliver safe and reliable natural gas.
These costs exist regardless of how much gas a customer uses. Fixed costs include expenses related to:
- Natural gas mains and other infrastructure that is required to deliver gas
- Labor required to maintain the gas main
- Labor and supplies to read the meter
- Qualified people to respond to gas emergencies
Demand charge
A monthly charge of $1.40678 per therm of Billing Demand. The Billing Demand is your highest
daily demand that has occurred during the peak months of December, January and February in the
most recent 12-month period. This charge does not vary based on how much natural gas you use during the month.
Volumetric distribution charge
The volumetric distribution charge on your bill varies each month based on how many therms of gas you use.
Storage charge
The storage charge covers some of the costs associated with the storage of natural gas.
Summary of charges
| Type of customer |
Customer charge* |
Demand charge |
Distribution charge |
| Rate 4 using less than 4,000,000 therms/year |
$1,872.77 per month |
$1.40678 per therm |
$0.07629 per therm |
| Rate 4 using 4,000,000 therms/year or more |
$1,872.77 per month |
$1.40678 per therm |
$0.07629 per therm |
* Excludes charges set by the State of Illinois to fund
weatherization, energy assistance, renewable energy grants, adjustments allowed by
Illinois Public Acts 96-0033 and 99-0906.
| Storage charge** |
For sales customers
Storage service charge |
$0.08795/therm |
For transportation customers
Storage banking charge |
$0.00997/capacity therm |
** Storage charge is subject to change in June and August.
Gas charge
The gas charge is for the purchase, transportation and storage of gas, as well as the
management of gas supplies for our customers. This charge includes the actual price we pay
to purchase gas from suppliers, including the costs of interstate pipeline transportation
and storage services (these charges vary each month, depending on the market price of natural gas.)
| Month |
Price per therm |
| November 2024 |
$0.3212 |
| October 2024 |
$0.3006 |
| November 2023 |
$0.3871 |
Note: Peoples Gas
does not profit from the price of gas, which appears on your bill as the Gas Charge.
This charge reflects Peoples Gas' actual cost for gas.
See a list of Historical Gas Charges.
Peoples Gas Energy Efficiency Program
Each month, your bill may include a charge that pays for the costs related to energy efficiency
and on-bill financing programs mandated by Illinois Public Act 96-0033. The programs offer incentives
for customers to make energy-saving improvements to their businesses.
Environmental charge
A charge that pays for the cleanup from past manufactured gas operations.
Uncollectible expense adjustment – gas costs
This adjustment applies to Sales Customers only. A factor of 0.0016 applied to the gas charge
on your bill to pay for gas supply-related uncollectible accounts expenses.
Qualified infrastructure plant charge
A percentage filed monthly with the ICC that pays for the costs of qualified infrastructure
investments allowed by Illinois Public Act 98-0057.
Storage gas charge
A per capacity therm charge assessed to Subscription Storage Transportation customers to pay for gas cost-related storage expenses.
Hub credit gas charge
A separate per therm adjustment filed monthly with the ICC related to interstate storage and transportation services.
Taxes
- Chicago municipal tax: imposed by the city of Chicago.
- State tax (Illinois gross revenue tax): mandated by the state
of Illinois to fund the Illinois Commerce Commission.
- State gas revenue tax: either 5 percent of current charges
before taxes or 2.4 cents per therm, whichever is lower.
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Summary of charges for Rate 8
Sales Customers are customers that purchase natural gas directly from
Peoples Gas under Rate 8 – Compressed Natural Gas Service.
Transportation Customers are customers who take service under Rate 8 and purchase
gas from an alternate supplier under Rider CFY (Choices for You), Rider FST
(Full Standby Transportation) or Rider SST (Subscription Storage Transportation).
The following charges appear on your monthly gas bill:
Delivery charge
The delivery charge is made up of a customer charge, volumetric distribution charges and a storage charge.
Customer charge
The customer charge covers many of the fixed costs to deliver safe and reliable natural gas.
These costs exist regardless of how much gas a customer uses. Fixed costs include expenses related to:
- Natural gas mains and other infrastructure that is required to deliver gas
- Labor required to maintain the gas main
- Labor and supplies to read the meter
- Qualified people to respond to gas emergencies
Volumetric distribution charge
The volumetric distribution charge on your bill varies each month based on how many therms of gas you use.
Storage charge
The storage charge covers some of the costs associated with the storage of natural gas.
Summary of charges
| Type of customer |
Customer charge* |
Distribution charge |
| Sales |
$143.02 per month |
$0.20857 per therm |
| Transportation |
$143.02 per month |
$0.20857 per therm |
* Excludes charges set by the State of Illinois to fund weatherization,
energy assistance, renewable energy grants, adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.
| Storage charge** |
For sales customers
Storage service charge |
$0.08795/therm |
For transportation customers
Storage banking charge |
$0.00997/capacity therm |
** Storage charge is subject to change in June and August.
Gas charge
The gas charge is for the purchase, transportation and storage of gas, as well as the
management of gas supplies for our customers. This charge includes the actual price we pay
to purchase gas from suppliers, including the costs of interstate pipeline transportation
and storage services (these charges vary each month, depending on the market price of natural gas.)
| Month |
Price per therm |
| November 2024 |
$0.3212 |
| October 2024 |
$0.3006 |
| November 2023 |
$0.3871 |
Note: Peoples Gas
does not profit from the price of gas, which appears on your bill as the Gas Charge.
This charge reflects Peoples Gas' actual cost for gas.
See a list of Historical Gas Charges.
Peoples Gas Energy Efficiency Program
Each month, your bill may include a charge that pays for the costs related to energy efficiency
and on-bill financing programs mandated by Illinois Public Act 96-0033. The programs offer incentives
for customers to make energy-saving improvements to their businesses.
Environmental charge
A charge that pays for the cleanup from past manufactured gas operations.
Uncollectible expense adjustment – gas costs
This adjustment applies to Sales Customers only. A factor of 0.0002 applied to the gas charge on your
bill to pay for gas supply-related uncollectible accounts expenses.
Qualified infrastructure plant charge
A percentage filed monthly with the ICC that pays for the costs of qualified infrastructure
investments allowed by Illinois Public Act 98-0057.
Storage gas charge
A per capacity therm charge assessed to Choices for You Transportation customers and
Subscription Storage Transportation customers to pay for gas cost-related storage expenses.
Hub credit gas charge
A separate per therm adjustment filed monthly with the ICC related to interstate storage and transportation services.
Taxes
- Chicago municipal tax: imposed by the city of Chicago.
- State tax (Illinois gross revenue tax): mandated by the state
of Illinois to fund the Illinois Commerce Commission.
- State gas revenue tax: either 5 percent of current charges
before taxes or 2.4 cents per therm, whichever is lower.
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