Understanding the increase on your bill

Our focus each day is providing safe, reliable and affordable service — even during extreme weather events. When single-digit and below-zero temperatures took hold across Wisconsin in February, our planning and operational efforts provided the natural gas needed to keep homes and businesses warm.

Our natural gas purchase and planning strategy also allowed us to mitigate some of the bill impacts to customers. However, due to the nationwide spike in natural gas prices and the bitter cold weather, customers will see a bill impact. This charge will appear in the purchased gas adjustment, or PGA, portion of your bill.

February’s impact on heating costs

While each bill will vary, we expect an average residential customer will see a total increase of $40-$85. Total increases for business customers will vary based on the rate class through which they receive service.

To lessen the immediate impact of these costs, we have asked the Public Service Commission of Wisconsin (PSCW) to allow us to spread the total costs over the months of April, May and June. Because we bill for natural gas the month after it is used, this may appear on your bill through July.

How the PGA is calculated

Natural gas is bought and sold on the commodities market, similar to goods like oil or milk. The price we pay for the gas is the same price you pay – there is no mark up.

The PGA indicates the difference between our expected price for natural gas (listed as the Base Gas cost on your bill) and the actual price we pay during a given time period, such as a monthly billing cycle.

Additionally, our natural gas purchases and forecasts are independently reviewed and approved by the PSCW, which regulates energy companies in Wisconsin.

Our natural gas strategy

We know how important affordable energy is for our customers, which is why we use a multi-pronged approach when we purchase natural gas. Every summer, when prices are typically their lowest, we buy natural gas and store it. We also lock in guaranteed natural gas supply contracts at fixed prices to limit the impact of sudden price changes. These options provide much of the natural gas our customers use each winter. However, long stretches of frigid weather may mean we need to purchase additional natural gas so we can continue keeping homes and business warm throughout our service area.

Resources for customers

We’re here to help if you are having difficulty with your bill. Customers with concerns about their bill should contact us as soon as possible to discuss options, including payment plans and the potential for financial assistance.

We also offer several ways to improve your energy efficiency moving forward. Our at-home checklist provides tips for customers to use to effectively manage their energy costs.