New Agricultural Seasonal Use rates starting Sept. 1

In accordance with the order in the most recent rate case, Wisconsin Electric – Gas Operations (WEGO) and Wisconsin Gas LLC (WG) firm Agricultural Seasonal Use customers are experiencing a change to their services effective Sept. 1, 2023. Agricultural Sales services are revised by combining the five rate classes into one rate class with a declining block rate design. The Customer Charge changed to $0.50 per day. Volumetric charges for utility gas distribution margin will step down based over the course of three usage blocks. The billing cycle usage blocks will consist of three steps, Step 1: Zero therms to 2,999 therms; Step 2: 3,000 therms to 9,999 therms; and Step 3: 10,000 therms and more, for the billing period. As a whole, customers will pay the same amount for agricultural crop drying using a declining block rate design as they do under the traditional size-specific single rate per class. Individual customer impacts will vary based on individual customer natural gas use.

Below are tables showing rates under the original structure and rates under the declining block structure that are in effect as of Sept. 1, 2023, for rate classes Ag-1, Ag-2, Ag-3 and Ag-4.

Volumetric distribution rates per therm below are summed up and presented as “Distribution Rate” for distribution, competitive supply, balancing and peak day costs.

WEGO Class Rate Summary
Days in Period Ag-1 Ag-2 Ag-3 Ag-4
Original Rates
Daily Customer Rate $0.33 $0.85 $6.00 $11.00
Distribution Rate (All Therms) $0.2640 $0.1923 $0.1434 $0.1281
 
Sept. 1 Rates
Daily Customer Rate $0.50 $0.50 $0.50 $0.50
Step 1 Distribution Rate (0 to 2,999 therms)* $0.2012 $0.2012 $0.2012 $0.2012
Step 2 Distribution Rate (3,000 to 9,999 therms)* $0.1939 $0.1939 $0.1939 $0.1939
Step 3 Distribution Rate (10,000 therms and over)* $0.1809 $0.1809 $0.1809 $0.1809
Base Gas Cost In-Season $/Therm $0.3955 $0.3955 $0.3955 $0.3955

* Step distribution rates are the sum of the step distribution rate of $0.1641 for Step 1, $0.1568 for Step 2, $0.1438 for Step 3, competitive supply rate of $0.0281, balancing rate of $0.0008 and the peak day rate of $0.0082.


WG Class Rate Summary
Days in Period Ag-1 Ag-2 Ag-3 Ag-4
Original Rates
Daily Customer Rate $0.33 $0.85 $6.00 $15.00
Distribution Rate (All Therms) $0.3406 $0.2345 $0.1782 $0.1378
 
Sept. 1 Rates
Daily Customer Rate $0.50 $0.50 $0.50 $0.50
Step 1 Distribution Rate (0 to 2,999 therms)** $0.2503 $0.2503 $0.2503 $0.2503
Step 2 Distribution Rate (3,000 to 9,999 therms)** $0.2264 $0.2264 $0.2264 $0.2264
Step 3 Distribution Rate (10,000 therms and over)** $0.1712 $0.1712 $0.1712 $0.1712
Base Gas Cost In-Season $/Therm $0.3840 $0.3840 $0.3840 $0.3840

** Step distribution rates are the sum of the step distribution rate of $0.2233 for Step 1, $0.1994 for Step 2, $0.1442 for Step 3, competitive supply rate of $0.0242, balancing rate of $0.0007 and the peak day rate of $0.0021.