Minnesota Natural Gas Rates
Natural gas is an important part of everyday life. So it's nice to know that you can rely on Minnesota Energy Resources 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.
- Who is this rate for?
- How reliable is my natural gas service?
- How is the natural gas I use measured?
- What charges are involved?
Who is this rate for?
The Natural Gas Rate for Business Service is designed to serve multi-family, commercial and industrial customers.
How reliable is my natural gas service?
Natural gas is available to you whenever you need it. The only exception — as with any gas service — is when unexpected events occur (such as a severe storm or a contractor digging into a gas line), that make it impossible to deliver gas to your business. When this happens, Minnesota Energy Resources responds immediately to restore service.
How is the natural gas I use measured?
The amount of gas flowing through your meter is measured in hundred cubic feet (CCF). But you are charged based on the average heat content of the gas delivered to your business — or the number of therms you use. One therm is equal to 100,000 British Thermal Units (Btu). One Btu represents the amount of heat needed to raise one pound of water one degree Fahrenheit at sea level.
Your bill shows how much gas (CCF) you used for the past month and a calculation that converts the amount of gas used (CCF) to reflect the heat content of the gas (therms). The heat content of gas may vary. Minnesota Energy Resources determines the heat content of the gas received from our supplier during the 30 days preceding your last meter reading date. The result is shown on your monthly bill.
What charges are involved?
Each month, your gas bill includes these charges:
- Distribution Charge, which covers the cost of delivering gas to your business on the Minnesota Energy Resources system. This charge varies with the amount of gas you use each month. See the Minnesota Rate Book for distribution charges in your area.
- Natural Gas Cost is the purchase, transportation and storage of gas, as well as the management of gas supplies for our customers. It includes the actual price we pay to purchase gas from suppliers and the costs of interstate pipeline transportation and storage services. These charges vary each month with the market price of natural gas. Minnesota Energy Resources does not profit from the price of gas, which appears on your bill as Natural Gas Costs.
- Customer Charge, a fixed charge that does not vary with the amount of gas you use. The Customer Charge covers the cost of providing safe, reliable gas service. It includes the cost associated with owning, maintaining and reading meters; maintaining equipment; and providing service programs and communication services. The Customer Charge is the minimum amount you will be billed each month.
Several factors can influence your monthly gas use. Major factors that can be measured by Minnesota Energy Resources are summarized in the lower left-hand corner of your monthly bill.