Natural gas rates

Natural gas is an important part of everyday life. So it's nice to know that you can rely on North Shore 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: For businesses that generate in excess of 25 MW of electricity using natural gas. For more information, please email Gas Transportation Services or call 800-264-8026.

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Summary of charges for Rate 2

Sales Customers are customers that purchase natural gas directly from North Shore 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 fixed charge, volumetric distribution charges and a storage charge.

Fixed Charge

The daily Fixed Charge does not change based on the amount of natural gas you use. It includes a Customer Charge and charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants, and adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.

Customer charge

The daily 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 Meter class Customer charge*
Sales Meter Class 1 (700 CFH or less) $0.87604 per day
Meter Class 2 (701 - 2,300 CFH) $2.31462 per day
Meter Class 3 (Over 2,300 CFH) $5.09322 per day
Transportation Meter Class 1 (700 CFH or less) $0.87604 per day
Meter Class 2 (701 - 2,300 CFH) $2.31462 per day
Meter Class 3 (Over 2,300 CFH) $5.09322 per day

* Excludes charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants, and adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.

Volumetric distribution charge (Sales and Transportation Customers)
First 3,000 therms $0.10007
Over 3,000 therms $0.08974
Storage charge**
For sales customers
Storage service charge
$0.00572/therm
For transportation customers
Storage banking charge
$0.0004/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
October 2021 $0.6719
September 2021 $0.5794
October 2020 $0.3517

Note: North Shore Gas does not profit from the price of gas, which appears on your bill as the Gas Charge. This charge reflects North Shore Gas' actual cost for gas.

See a list of Historical Gas Charges.

North Shore 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 0.0057 applied to the gas charge on your bill to pay for gas supply-related uncollectible accounts expenses.

Franchise cost adjustment (Rider FCA)

A charge for municipal franchise agreements. Applies to certain municipalities in the North Shore Gas service territory. This charge will change annually in May for each applicable municipality.

Volume balancing adjustment

This tool 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.

Governmental agency compensation adjustment (Rider GCA)

A charge that pays for the fees and costs related to meeting the requirements of local governmental bodies. Applies to certain municipalities in the North Shore Gas service territory. This charge will change annually in January for each applicable municipality.

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.

Taxes

  • Municipal Utility Tax: Imposed by some municipalities on current charges before taxes.
  • 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 North Shore 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 fixed charge, demand charge, volumetric distribution charge and a storage charge.

Fixed Charge

The daily Fixed Charge does not change based on the amount of natural gas you use. It includes a Customer Charge and charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants, and adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.

The daily 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 $0.68708 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 sales using less than 4,000,000 therms in a year $11.57152 per day $0.68708 per therm $0.02058 per therm
Rate 4 transportation using less than 4,000,000 therms in a year $11.57152 per day $0.68708 per therm $0.02058 per therm

* Excludes charges set by the State of Illinois to fund weatherization, energy assistance, renewable energy grants, and adjustments allowed by Illinois Public Acts 96-0033 and 99-0906.

Storage charge**
For sales customers
Storage service charge
$0.00572/therm
For transportation customers
Storage banking charge
$0.0004/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
October 2021 $0.6719
September 2021 $0.5794
October 2020 $0.3517

Note: North Shore Gas does not profit from the price of gas, which appears on your bill as the Gas Charge. This charge reflects North Shore Gas' actual cost for gas.

See a list of Historical Gas Charges.

North Shore 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 0.0000 applied to the gas charge on your bill to pay for gas supply-related uncollectible accounts expenses.

Franchise cost adjustment (Rider FCA)

A charge for municipal franchise agreements. Applies to certain municipalities in the North Shore Gas service territory. This charge will change annually in May for each applicable municipality.

Governmental agency compensation adjustment (Rider GCA)

A charge that pays for the fees and costs related to meeting the requirements of local governmental bodies. Applies to certain municipalities in the North Shore Gas service territory. This charge will change annually in January for each applicable municipality.

Taxes

  • Municipal Utility Tax: Imposed by some municipalities on current charges before taxes.
  • 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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