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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 Customer Select, customers can select from a number of natural gas suppliers offering this service. Program participants continue to pay the Nicor Gas delivery charges because Nicor Gas continues to deliver their gas to them, 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, Customer Select customers pay a Customer Select Charge (see Glossary of Terms - NEEDSLINK) to recover this cost. Additionally, Customer Select customers receive a Transportation Service Credit (therms X $0.0211) 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 4 with Rider 25 - Firm 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 storage and 100 percent backup service. The customer also pays the Nicor Gas delivery charge, a portion of the gas supply charge (for providing the 100 percent backup service) and administrative charges.

* Rider 25 is a fully bundled service under which customers can transport their own supplies. A fixed storage capacity is assigned to each customer equivalent to 28 times their Maximum Daily Contract Quantity (MDCQ) through May 31, 2009 and 31 times their MDCQ beginning June 1, 2009. Each customer is fully backed up and any supplies required in excess of customer-owned gas will be provided by Nicor Gas at the Commodity Gas Cost. Customers that have more than one account in our service territory may form groups. Grouping allows consolidation of administrative activities such as nominating gas.

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 5 with Rider 25

The customer profile is the same as Rate 5 – Seasonal Use Service. However,these customers arrange for gas purchases from another source and contract with Nicor Gas for storage and 100 percent backup service. Charges are similar to those explained in Rate 4 with Rider 25.

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 $3,500 excluding gas commodity costs. Customers purchase all natural gas supplies from Nicor Gas.

Rate 6 with Rider 25

The customer profile is the same as Rate 6 - Large General Service. However, these customers arrange for gas purchases from another source and contract with Nicor Gas for storage and 100 percent backup service. Additional charges are similar to those explained in Rate 4 with Rider 25.

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 $8,900 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 7 with Rider 25

The customer profile is the same as Rate 7 – Large Volume Service. However, these customers arrange for purchases from another source and contract with Nicor Gas for storage and 100 percent backup service. Additional charges are similar to those explained in Rate 4 with Rider 25.

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 and firm backup options. Rate 74 is considered an "unbundled" rate because you can select your storage and backup 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 $2,600 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 $9,200 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 offer

Choosing Transportation Rates and Services

Rate

Annual Therm Use

Nicor Gas provides gas supplies

Marketer provides gas supplies

Nicor Gas provides storage and backup

Minimum bill excluding gas commodity cost

4

less than 800,000

X

4 w/Customer Select

less than 800,000

X

4 
w/Rider 25

less than 800,000

X

X
(100% backup)

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


w/Rider 25

700,000 therms maximum annually – Less than 5% used during billing months January through April

X

X
(100% backup)

75

700,000 therms maximum annually – Less than 5% used December through March

X

X

6

more than 800,000 but less than 
10 million

X

$4,200


w/Rider 25

more than 800,000 but less than 
10 million

X

X
(100% backup)

$4,200

76

more than 800,000 but less than 
10 million

X

X

$3,500

7

10 million 
or more

X

$12,000

7 
w/Rider 25

10 million 
or more

X

X
(100% backup)

$12,000

77

10 million 
or more

X

X

$14,200

Rates and Services FAQ

How will I be notified of a Critical Day?

Nicor Gas will post a notice on the company's electronic bulletin board and on a recorded dial-in message (1-630-983-4040, Option 3) at least 25 hours before the start of the Critical Day. When a Critical Day occurs, you can change your nominations until 8 a.m., one hour before the start of the Critical Day.

How will I be notified of an Operational Flow Order (OFO)?

Nicor Gas will post a notice on the company's electronic bulletin board and on a recorded dial-in message (1-630-983-4040, Option 3). Customers and Suppliers will be notified of any OFO at least two hours before the Gas Industry Standards Board nomination deadline on the interstate pipelines with the company's facilities.

Is there a limit to the Firm Backup Service selection?

No, but most customers don't need to select more than 52 percent of their MDCQ as FBS if they have elected 28 days of SBS prior to June 1, 2009. After June 1, 2009, 53 percent of peak use can be satisfied through SBS withdrawal rights, assuming an SWF of 1.0. As such, most customers won't need to select more than 47 percent of their MDCQ as FBS, assuming an election of 31 days of SBS.

How much company-supplied gas is available to me on a Critical Day?

In addition to FBS, 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 June 1. If the "new" MDCQ is within five percent of the current MDCQ, no change will be made.

What if my gas in storage exceeds my storage bank capacity?

A fee of 10 cents per therm will be charged monthly for every therm in storage in excess of your storage bank capacity. For customers who are monitored daily under an unbundled transportation rate, the excess storage fee is based on the maximum number of therms over their bank capacity in that billing period. If the excess amount is less than 5 percent of the SBS capacity, no charges will be assessed.