Minnesota 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 home comfortable. We're making improvements to ensure that you have a reliable supply of energy for years to come. Of course, these improvements come with a cost. It's likely that our customers will see increasing energy rates for the next several years.

We can't avoid making the changes our customers depend on. What we can do is manage our costs responsibly—and provide you with the information you need to take control of your energy costs. A good way to start is by understanding the rates you see on your monthly energy bill.

Natural Gas Rates for Residential Customers in Minnesota

The Natural Gas Rate for Residential Service is designed to serve:

• your single-family home, or
• your apartment if it has its own meter

If you live in an apartment, condominium or other building where two or more units are served by one meter, the Minnesota rates for businesses apply.

How Reliable Is the Service This Rate Provides?

The Natural Gas Rate for Residential Service provides uninterrupted service to your home, except in emergencies. This means 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 home. When this happens, Minnesota Energy Resources responds immediately to restore service.

How Is the 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 home—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 home on the Minnesota Energy Resources system. This charge varies with the amount of gas you use each month. Customers formerly served by Peoples Natural Gas pay $.11771 per therm and customers formerly served by Northern Minnesota Utilities pay $.1941 per therm for this service. Your bill shows the number of therms used multiplied by this cost per therm.
• Natural Gas Cost is the purchase, transportation and storage of gas, as well as the management of gas supplies for our customers. It includes:
  
  • Natural Gas Costs, 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 with the market price of natural gas.)
  
  Please note that Minnesota Energy Resources does not profit from the price of gas, which appears on your bill as Natural Gas Costs. This change reflects Minnesota Energy Resources' actual cost for gas.
• 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 of Minnesota Energy Resources 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.

How Much Is the Customer Charge?

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.

See the Rate Book for more information.