How the Natural Gas Cost charge 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.

One component of the Natural Gas Cost is our forecasted cost to purchase natural gas. The other component is the difference between our expected price for natural gas and the actual price we pay during a given time period, such as a monthly billing cycle.

• If our actual costs are lower than our expected costs: the difference is credited back to our customers, and lowers their monthly Natural Gas Cost rate.
• If our actual costs are higher than our expected costs: the difference is factored into the Natural Gas Cost, causing a temporary rate increase.

Our natural gas purchases, including both our forecasted costs and any additional gas needed to reliably serve our customers, are independently reviewed and approved by the Public Service Commission of Wisconsin, 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.