Glossary of terms

A monthly charge that is billed to the SVT supplier to recover the cost of providing storage and daily balancing service to Choices for You customers. The ABGC is based on certain firm storage and transportation services that the Company purchases. The ABGC, as approved by the Illinois Commerce Commission, can be found in Rider 2, Gas Charge in the company's schedule of rates.

Each day, the supplier is responsible for providing gas to meet their customers' daily requirements. This gas may come from supplies that the supplier is purchasing on behalf of the customer and delivering to our gas distribution system, or it may be gas that the supplier is withdrawing from storage. The gas withdrawn from storage comes from a storage service provided by the Company to the supplier. ABGC includes part of the cost of providing this storage service to suppliers.

ABGC also includes the cost of providing daily balancing. When suppliers deliver gas to our distribution system and/or withdraw gas from storage to meet the demands of their customers, the supply that they provide does not always match the gas that their customers consume. This mismatch or imbalance between supply and demand occurs daily. The Company will use its storage and related services to provide additional gas or absorb the excess supply to balance the differences between the gas that the supplier provides and the gas that the customers consume. The cost of using purchased services to provide this daily balancing is also included in ABGC.

The charge for ABGC is calculated by multiplying the monthly ABGC by the supplier's SVT Pool's monthly consumption.)
A third party who is authorized to purchase, manage and/or bill for natural gas service. For example, when you sign a contract with a supplier, they become your account agent and are authorized to buy natural gas on your behalf and may also be authorized to receive bills from the utility and other information that would otherwise be sent directly to you.
The month's Monthly Storage Activity (MSA) adjusted for the previous months' Storage Carryover.
The amount of time covered by one bill, usually one month.
A payment option that spreads a customer's estimated utility costs evenly over the year.
Suppliers may offer packages that include both gas and electric offers.
The natural gas you use, not including any services provided by the supplier or utility.
A program offered by Peoples Gas that allows residential and small business customers to choose their natural gas supplier.
A fixed charge that recovers the costs associated with making service available to customers. Costs covered by this charge include those for supplying and maintaining meters, maintaining equipment, and providing service programs and communication services (customer education, safety, school programs etc.). The customer charge varies for different classes of service because the cost to supply service varies by class.
Separating the service of purchasing natural gas from the distribution function of the utility and allowing other, suppliers the opportunity to sell natural gas to customers. The rates and services of these suppliers are not regulated by the Illinois Commerce Commission. The utility continues to deliver the natural gas.
A per-therm charge assessed by Peoples Gas based primarily on the volume of gas delivered to the customer.
The customer pays the same amount every month for a set period of time. Changes in the customer's use or the market price of natural gas should not affect the amount the customer pays.
Includes the customer charge that pays for the costs associated with making service available to customers and additional surcharges/adjustments under the Public Utilities Act.
The customer pays the same price per therm for natural gas each month, but their bill will vary based on the amount of gas they use. Changes in the market price of natural gas should not affect the amount they pay. This type of contract offers stability. If market prices go up, the customer is locked in at a lower rate. But, if market prices go down, the customer will pay the amount they have locked in.
A charge that recovers the cost of Peoples Gas' gas supply. The gas charge is determined monthly and filed with the Illinois Commerce Commission (ICC).
See Market-based
A written agreement that a residential customer switching gas suppliers must sign, unless the customer is signing up by Internet or telephone, to authorize the new supplier to purchase gas on the customer's behalf.
Based or index price: Under these plans, you can expect the price for natural gas to change each month. The supplier sets the monthly price per therm based on natural gas market indicators, meaning your gas price will fall and rise with market prices.
The Pool MDQ divided by the System MDQ.
A number that determines in aggregate how SVT Suppliers' storage will deviate as weather varies from normal.
An acronym for the New York Mercantile Exchange where contracts for commodities, including natural gas, are traded. At the NYMEX, natural gas futures and options contracts are traded and future pricing directions are established. Suppliers may establish their prices using the NYMEX.
Customers can sign up for the program and are eligible to choose their own natural gas supplier. There is no deadline for signing up, and customers may switch between suppliers at any time — subject to any supplier contract provisions. There are annual sign up limitations for residential customers.
The number that determines by how many dekatherms a pool's storage will vary from the planned storage with variations in weather. It is calculated by multiplying the Monthly System Coefficient by the Pool MDQ Percentage.
A customer who buys gas supply service from the utility and who does not receive supply service from a gas supplier.
A service provided by either Peoples Gas or a supplier that offers one bill containing charges from both Peoples Gas and the supplier.
A type of service offered by pipelines and other owners of storage facilities whereby the gas may be placed in the facility, usually during the summer, and kept until a later date when the owner of the gas may withdraw the stored gas, usually in winter.
The quantity of gas withdrawn from storage greater than (surplus) or less than (deficit) the month's Adjusted MSA, in other words, the amount by which actual withdrawals deviate from the planned withdrawals.
A company other than the local utility that supplies natural gas to customers.
The maximum daily quantity that all customers within the utility's system require on a peak day.
The basic unit for measuring natural gas use.
A supplier/marketer that is owned all or in part by the same corporation that owns the local utility.
The price for natural gas may go up or down with market trends. But the price per therm may not necessarily be tied to a market index. For example, it may be based on the supplier's average cost to purchase natural gas.
The average cost of gas based on your gas use. If you use more gas in a given billing period, that month's gas price carries more weight in the calculation. If you use less gas in a billing period, that month's gas price carries less weight. Since gas costs change throughout the year, this is an accurate way to figure out a customer's average yearly price per therm.