Current Fee Schedule:

Notice of Intent

Rate Change Date September 1, 2008

New Rate Schedule

            Standard Gas Service Account                                    $13.00/mo

            Premium-Flex Gas Service Account                         $20.00/mo

            Base Rate for 1-50,000 Cubic Feet                            $ 3.45 Per Thousand plus Cost of Gas

            Base Rate for Over 50,000 Cubic Feet                       $ 2.75 Per Thousand plus Cost of Gas

            Fees:                                        Reg. Bus. Hrs               After Hours

            New Service                                               $15.00                         n/a

            Transfer Service                                          $15.00                         n/a

            Re-Connect                                                $45.00                         additional $10.00

            Fall Turn-On                                               $45.00                         additional $10.00

            Missed Appointment                                   $10.00                         $10.00

            E-Commerce fee                                        $50.00 or 6% of transaction

            Advanced Billing Services                           $50.00 per month

Old Rate Schedule

            Gas Service Account                                                   $12.00 Minimum Charge

            1-50,000 Cubic Feet (Base Rate)                                $ 5.70 Per Thousand*

            Over 50,000 Cubic Feet (Base Rate)                          $ 5.00 Per Thousand*

Cost of Gas base for Purchased Gas Adjustment      $2.25 Per Thousand

            Fees:                                       Reg. Bus. Hrs               After Hours

            New Service                            $15.00                         $15.00

            Transfer Service                      $15.00                         $15.00

            Re-Connect                             $30.00                         $40.00

            Fall Turn-On                           $20.00                         $35.00

            Missed Appointment               $10.00                         $10.00

*The asterisk in the Old Rate Schedule referred to a Purchased Gas Adjustment (PGA) calculation that is not a part of the New Rate Schedule

            Premium-Flex Gas Service Account allows a customer to discontinue and resume gas service as needed without terminating their deposit or paying a fee for turn-on when service is resumed. Additional services may be added to the Premium-Flex service level at a reduced or eliminated fee as they become available.

             Re-Connects refer to service calls to re-connect service to customers who have been disconnected for failure to pay. 

             Fall Turn-Ons refer to service calls to turn gas service back on after summer disconnects. (Does not apply to           Premium-Flex Customers)

 E-Commerce fee As electronic commerce services become available the Gas Company will offer them to the customers at a cost not to exceed the scheduled rate.

 Advanced Billing Services As Advanced Billing Services become available the Gas Company will offer them to the customers at a cost not to exceed the scheduled rate.

All charges are subject to sales tax if applicable.

 For the purposes of this rate, Cost of Gas is defined as the amount paid by the Bay City Gas Company to its supplier(s) inclusive of all charges, transportation fees, and service fees; and after applying any discount(s) received.  The Cost of Gas may include a factor for recoupment of: a.) fees, taxes or rates assessed upon the Gas Company by the State or Federal regulatory authorities; b.) lost and unaccounted for gas volumes; and c.) gas used by City of Bay City and Bay City Gas Company operations. The Cost of Gas does not include promotional rates for special air conditioning, electric generation, or other promotional load.  The Cost of Gas for meters read during the calendar month shall be determined by the management of the Bay City Gas Company on or before the fifth working day of that month and will be available to the public from the offices of the Gas Company.

 IMPACTS:

NOTE: The increase in fees-for-services are only incurred on an “as needed” basis and do not properly impact an average monthly bill.

All classes of Gas Company customers are impacted by this rate.

The average monthly bill for 3,938 Residential Gas Customers will increase a net 5% or $1.91 due to this rate change.

There are 0 customers in the newly created Premium-Flex Gas Service Account classification so no financial impact can be calculated.

The average monthly bill for 344 Commercial & Industrial Gas Customers will increase a net 7.8% or $20.98 due to this rate change.

The average monthly bill for 30 Public Authority Gas Customers will increase a net 7.1% or $7.09 due to this rate change.

The annual revenues of the Bay City Gas Company are projected to increase 5.8% or $185,579 due to the changes in account fees and gas pricing. The revenue impact of the increases in fees for services is projected at 2.5% or $79,000 per year.

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JULY purchase cost of gas, per thousand cubic feet (mcf): $13.34

EXPLANATION OF YOUR BILL - SEE BELOW

Service Costs:
$ 5.70 per mcf (thousand cubic feet) plus Purchased Gas Adjustment*
*Purchased Gas Adjustment (PGA) equals the purchase cost of gas supply less $2.25/mcf
$12.00 monthly meter fee

Other Services:
Gas service for new construction – Bay City Gas Company will run new service lines of up to 100’ at no charge to new homes or businesses
Pilot lights – upon request, Bay City Gas Company will light pilot lights on customers’ appliances (see Fee Schedule)
Generator sales, installations and service - see "Products" page

 Rebates:
We have rebates available for customers wanting to install GAS furnaces, ovens, water heaters, clothes dryers, gas grills, fire logs and hot tub heaters. Rebates are available for the appliance purchase AND for plumbing work required to connect to the gas supply. Terms and conditions apply and rebate amounts are subject to change. Call our office at (979) 245-2327 for details.

Special Items:

EXPLANATION OF YOUR BILL:  your  gas bill, like your electric and water bills, is based on USAGE, measured in hundreds of cubic feet (ccf). This figure is on your monthly bill, about halfway down on the left side. The cost of your service is broken into two component prices, and each component price is then multiplied by your usage.

"GAS" = the amount shown on your bill as "GAS" is the volume of gas used multiplied by $.57; this is the rate for service set many years ago, and includes an assumed price of $.225 per ccf for natural gas

"GAS ADJ" = the amount shown on your bill as "GAS ADJ" is the volume of gas used multiplied by the following:  actual purchase price of gas (purchased by Bay City Gas Company on the open market) LESS $.225 already built into the service rate (see "GAS" above).

Years ago, when natural gas was cheap and abundant, the $.225 built into the service rate actually covered the full cost of the gas we purchased on the open market. Since about 1998, natural gas prices have risen dramatically, and natural gas is now priced anywhere from $.60 to over $1.00 per ccf !!  It is this excess cost that is passed on to the customer on the "GAS ADJUSTMENT".

All customers are also charged a flat meter charge of $12.00 per month, regardless of usage.

Bay City Gas Company works very hard to keep our costs down and to be good stewards of the public trust. All revenue generated by Bay City Gas Company goes to pay operating expenses of the company, and to provide funding for roads, streets, bridges and other City and civic improvements for the benefit of the citizens of Bay City.