Board Approves Natural Gas Rate Revisions | News

Board Approves Natural Gas Rate Revisions

May 17, 2017

At its May 15, 2017 meeting, Midwest Energy's Board of Directors voted to make changes to how irrigation, grain drying and industrial customers who buy gas from Midwest Energy are billed for "upstream capacity" charges.  It is not a general rate increase.

Midwest Energy is charged for “upstream capacity” by interstate pipeline companies that deliver gas to the local pipeline system.  Upstream costs were previously passed on to irrigation, grain drying and industrial sales service customers if gas is used only during the winter months.  With the approved changes, upstream costs will now pass through regardless of season, beginning in January 2018.  This flow-through of upstream capacity charges is estimated to be $.15 to $.20 per therm for sales service customers during non-winter months in 2018.  This change will not affect transportation service customers who buy natural gas from third parties. 

Customers with questions about the revisions should contact Midwest Energy at 1-800-222-3121.