There are four parts to your natural gas bill:

Gas Supply - or Gas Cost Recovery (GCR)

The cost of the actual gas that flows through your meter - shown on your bill in measurements of 100 cubic feet (Ccf). This cost account for 75% to 80% of your bill.  The rate is either set by the MPSC, or an alternative gas supplier, depending on your source of supply.

Delivery

The cost of delivering the gas from a central pipeline to your home or business. This charge also includes construction and maintenance costs; depreciation costs, and the company's return on invested capital. This charge is based on the amount of gas used (Ccf) and is a MPSC-regulated rate.

Customer Charge

A fixed monthly charge that covers the cost of making sure that you always have access to gas.  Company costs covered by this charge include meter reading, billing, administrative costs, and service line maintenance. This charge is the same no matter how much natural gas you use.

Sales Tax

The Michigan Department of Treasury requires the utility company to collect 4% sales tax from residential customers and 6% from business customers.