The Peoples Gas Light and Coke Company Rate Selection Guide

The Peoples Gas Light and Coke Company is the natural gas local distribution company for the City of Chicago, serving about 1.1 million customers as a WEC Energy Group subsidiary. It provides billing data through the My Account portal and supports gas supplier choice via the Choices for You program, but does not currently offer Green Button or a public API.

Illinois · Investor-Owned Utility·Deregulated market·Fully supported by Nectar·Last updated June 3, 2026

The Peoples Gas Light and Coke Company Rate Schedule Comparison

ScheduleTypeRateBest For
Rate 2 - General ServicecommercialCustomer charge $49.81-$348.12/mo by meter class; distribution $0.25104/therm (first 5,000), $0.19061 above; gas charge $0.3676/therm (Jun 2026)Most commercial and industrial accounts up to ~41,000 therms/month
Rate 4 - Large Volume Demand ServiceindustrialCustomer charge $1,872.77/mo; demand $1.40678/therm; distribution $0.07629/therm; gas charge $0.3676/therm (Jun 2026)Large industrial loads above ~41,000 therms/month
Rate 8 - Compressed Natural GascommercialCustomer charge $143.02/mo; distribution $0.20857/therm; gas charge $0.3676/therm (Jun 2026)CNG fueling and compression operations
Rider CFY (Choices for You)commercialUtility delivery charges + competitive supplier gas commodity price (varies by contract)C&I customers seeking budget certainty or savings on the gas commodity
01

Market Overview

Illinois has a competitive retail gas market. Peoples Gas is the regulated distribution utility for Chicago; commercial and industrial customers may select an alternative gas supplier under the Choices for You (Rider CFY) program while delivery service remains regulated by the Illinois Commerce Commission.

Market Type
Deregulated (Competitive)
Supplier Choice
Available

Need to pull your actual usage data to compare rates? See the The Peoples Gas Light and Coke Company Data Access Guide →


02

Current Rate Schedules

Verified from the Peoples Gas Business Rates page (delivery rates regulated under Ill. C.C. No. 28; gas charge updated monthly). Commercial and industrial customers fall under Rate 2 (General Service, up to ~41,000 therms/month), Rate 4 (Large Volume Demand Service, above ~41,000 therms/month), or Rate 8 (Compressed Natural Gas). The June 2026 gas commodity charge is $0.3676/therm for sales customers. Delivery is billed via a fixed customer charge plus volumetric distribution and storage charges; Rate 4 adds a billing-demand charge. A general rate increase (~$202.3M revenue request) was filed with the ICC in January 2026.

Effective: June 1, 2026 · Full Tariff Book →

ScheduleTypeApplicabilityStructureRate
Rate 2 - General ServicecommercialMulti-family, commercial, and industrial customers averaging 41,000 therms/month or less.Customer charge by meter class: $49.81 (Meter Class 1, =700 CFH), $156.04 (Class 2, 701-3,000 CFH), $348.12 (Class 3, over 3,000 CFH). Volumetric distribution charge: $0.25104/therm for the first 5,000 therms, $0.19061/therm above 5,000. Storage service charge $0.07747/therm (sales). Gas charge (sales) $0.3676/therm as of June 2026.
Rate 4 - Large Volume Demand ServiceindustrialLarge-volume business customers averaging more than 41,000 therms/month.Customer charge $1,872.77/month. Demand charge $1.40678/therm of billing demand (peak winter daily demand). Distribution charge $0.07629/therm. Storage service charge $0.07747/therm (sales). Gas charge (sales) $0.3676/therm as of June 2026.
Rate 8 - Compressed Natural Gas ServicecommercialBusinesses using natural gas as compressed natural gas (CNG).Customer charge $143.02/month. Distribution charge $0.20857/therm. Storage service charge $0.07747/therm (sales). Gas charge (sales) $0.3676/therm as of June 2026.
Rider CFY - Choices for You (Transportation)commercialRate 1/2/8 customers buying gas from an alternative supplier while Peoples Gas delivers.Customer keeps Peoples Gas delivery charges (customer + distribution + storage banking charge $0.00997/capacity therm) and pays the chosen supplier for the gas commodity instead of the utility gas charge.
Rate 5 - Electric GenerationindustrialBusinesses generating more than 25 MW of electricity using natural gas and selling some/all off-system.Specialized transportation/distribution structure; pricing arranged through Gas Transportation Services (800-264-8026). Refer to Ill. C.C. No. 28.

03

Rate Recommendations by Use Case

🏢

Mid-size commercial building

Offices, schools, multi-family, and light commercial under ~41,000 therms/month.

Recommended:
Rate 2 - General Service

Rate 2 fits the vast majority of C&I accounts, with a customer charge scaled to meter size and a declining-block distribution rate above 5,000 therms.

Tips:
  • Confirm your meter class so the fixed charge is right
  • Consider Choices for You for commodity price certainty
  • Pull monthly usage from My Account or EIS for budgeting
Est. monthly: Customer charge $49.81-$348.12 + ~$0.25/therm distribution + gas charge ~$0.3676/therm
🏭

Large industrial / high-volume manufacturer

Process heat, large boilers, and manufacturing above ~41,000 therms/month.

Recommended:
Rate 4 - Large Volume Demand Service

Rate 4's low $0.07629/therm distribution rate rewards high volume, but the $1.40678/therm winter demand charge makes peak management essential.

Tips:
  • Minimize peak December-February daily demand
  • Evaluate Full Standby (Rider FST) if buying gas elsewhere
  • Use Choices for You to lock commodity pricing
Est. monthly: $1,872.77 customer charge + $1.40678/therm demand + $0.07629/therm distribution + commodity
🚛

CNG fueling / fleet operation

Fleets and operations using natural gas as compressed natural gas.

Recommended:
Rate 8 - Compressed Natural Gas Service

Rate 8 is purpose-built for CNG with a moderate $143.02/month customer charge and a single $0.20857/therm distribution charge.

Tips:
  • Confirm CNG eligibility with Gas Transportation Services
  • Consider Choices for You for commodity certainty
  • Track therm usage via My Account
Est. monthly: $143.02 customer charge + $0.20857/therm distribution + gas charge ~$0.3676/therm
📊

Multi-site or energy-managed portfolio

Customers managing several Chicago accounts or working with a broker/consultant.

Recommended:
Rider CFY - Choices for You

Choices for You unbundles the commodity so a portfolio can be priced competitively across sites while delivery stays regulated; suppliers receive usage data via PEGASys.

Tips:
  • Sign a Third-Party Verification Agreement to authorize your consultant
  • Aggregate sites for better supplier pricing
  • Mind the 10-business-day contract rescission window
Est. monthly: Utility delivery charges + negotiated supplier commodity price

04

Historical Rate Trends

The pass-through gas charge moves monthly with the natural-gas market, while delivery charges change through ICC rate cases and infrastructure riders. The verified monthly gas charge has fallen year-over-year, while a January 2026 rate case proposes higher delivery rates.

June 1, 2026

Monthly gas charge set to $0.3676/therm for sales customers (down from $0.4599 in May 2026).

-20.1%

June 1, 2025

Gas charge was $0.5543/therm in June 2025 versus $0.3676/therm in June 2026, a notable year-over-year decline in the commodity cost.

-33.7%

February 19, 2026

Peoples Gas filed tariff sheets (Advice No. 1941) with the ICC for a general delivery rate increase, a revenue request of about $202.3 million, with revisions to service classifications and riders.

pending ICC approval

Overall trend: Gas commodity charge down sharply year-over-year (June 2025 to June 2026); delivery charges trending up via the pending rate case and infrastructure riders.

Next expected change: ICC decision on the January 2026 rate case (~$202.3M revenue request, originally proposed effective February 2026) would adjust delivery rates; gas charge continues to reset monthly.


05

Cost Optimization Strategies

Because delivery charges are regulated and the gas charge is a pass-through, C&I savings at Peoples Gas come from rate-class fit, demand management on Rate 4, supplier choice under Choices for You, and efficiency programs.

Confirm correct rate class and meter class

For: All C&I gas accounts

Avoids overpaying fixed and demand charges

Verify whether your account belongs on Rate 2 vs. Rate 4 (the ~41,000 therms/month threshold) and that the Rate 2 customer charge reflects the right meter class, since the fixed charge jumps from $49.81 to $348.12 across classes.

Manage Rate 4 winter billing demand

For: Large industrial (Rate 4)

Demand-charge reduction over 12 months

Rate 4 demand is set by the highest daily demand in December-February and persists for 12 months at $1.40678/therm. Shifting or curtailing peak winter usage can lower the demand charge for a full year.

Shop the gas commodity via Choices for You

For: Rate 1/2/8 C&I customers

Commodity price certainty / potential savings vs. monthly pass-through

Replace the monthly utility gas charge with a fixed or managed price from an ICC-licensed supplier for budget certainty; delivery charges are unaffected.

Use EIS and efficiency programs

For: Business / transportation customers

Usage reduction and rebate capture

Use the Energy Information System for usage and degree-day analysis, and tap Peoples Gas business energy-efficiency incentives funded under IL Public Act 96-0033.

To implement these strategies, you need your 15-minute interval data. Learn how to download The Peoples Gas Light and Coke Company interval data →


06

Deregulated Market Shopping

Illinois gas customers can buy the gas commodity from a licensed alternative supplier through the Choices for You program while Peoples Gas continues to deliver. Open to Rate 1, 2, and 8 customers. Delivery charges remain regulated; only the gas charge is replaced by the supplier's price.

How to Compare The Peoples Gas Light and Coke Company Suppliers

  1. 01Review the list of ICC-licensed Choices for You suppliers at peoplesgasdelivery.com/payment-bill/choice/supplier
  2. 02Compare offers against the current Peoples Gas monthly gas charge ($0.3676/therm in June 2026)
  3. 03Enroll directly with the chosen supplier (the supplier files via PEGASys/FTP)
  4. 04For C&I portfolios, aggregate accounts and request bids through a broker

Contract Terms for The Peoples Gas Light and Coke Company Supply Agreements

  • Fixed, variable, or block-and-index commodity pricing
  • Terms commonly 12-60 months for C&I
  • 10-business-day rescission window after enrollment
  • Delivery service and customer charges are unaffected by the supplier choice

Common Pitfalls When Shopping The Peoples Gas Light and Coke Company Rates

  • Compare against the utility gas charge, which carries no utility markup for sales customers
  • Watch for variable-rate resets and early-termination fees
  • Confirm whether supplier charges appear on the Peoples Gas bill (LDC Billing Option) or separately
  • Suppliers must honor the customer no-contact list and Standards of Conduct

07

Frequently Asked Questions

Can my business get interval (hourly or daily) gas data from Peoples Gas?

Not for standard accounts. The highest granularity for most commercial and industrial customers is monthly therm usage in My Account. Transportation-service customers under the Choices for You program receive daily delivery-range data through the PEGASys system, which is the closest thing to interval data Peoples Gas offers.

Does Peoples Gas support Green Button or an API for our energy software?

Peoples Gas does not offer Green Button (ESPI) downloads or a public REST/SOAP API of its own. Programmatic exchange through the utility is limited to certified Choices for You suppliers via custom FTP and the PEGASys web system. Nectar provides API access to this utility's billing data — see docs.nectarclimate.com.

How does a consultant or broker get authorized to pull our usage data?

The customer signs a Third-Party Verification Agreement naming the agent and the authorized data types, then submits it to eis@peoplesgasdelivery.com (or by mail to 200 E. Randolph St., Chicago, IL 60601). Once recorded, the agent can request billing and usage history, typically within 3-5 business days. Peoples Gas may charge a processing fee.

Which rate applies to a commercial or industrial gas account?

Rate 2 (General Service) covers multi-family, commercial, and industrial customers averaging 41,000 therms/month or less. Rate 4 (Large Volume Demand Service) applies above that threshold and adds a billing-demand charge. Rate 8 covers compressed natural gas. All include a fixed customer charge, volumetric distribution charge, storage charge, and a pass-through gas charge for sales customers.

Can a C&I customer shop for a competitive gas supplier?

Yes. Under Choices for You (Rider CFY), customers on Rates 1, 2, and 8 can buy the gas commodity from an ICC-licensed alternative supplier while Peoples Gas continues to deliver. Delivery (distribution) charges stay regulated; only the gas commodity portion becomes competitive. Customers have a 10-business-day rescission window on supplier contracts.

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