Glossary of Terms

Aggregation Balancing Gas Charge (ABGC): The ABGC is a charge for gas related storage expenses. Although the ABGC is billed as a separate line item for Choices For You customers, it is not an additional cost. Customers buying their gas from Peoples Gas and North Shore Gas pay this cost as part of their overall Gas Charge cost. The ABGC is billed to customers based on usage. The rate may change each month and it is filed with the ICC.

Alternative Gas Supplier (AGS): A company certificated by the Commission that sells natural gas to residential and small commercial customers who are eligible to choose an alternative natural gas supplier.

City Gate: Point at which a local gas utility receives gas from a pipeline company. An AGS typically would be responsible for transporting natural gas on behalf of its customer to the applicable local gas utility or city gate.

Customer Select Charge (CSC): The CSC recovers the costs to assist in the daily balancing of gas supplies on Nicor Gas' system. The CSC is not an additional cost for Customer Select participants -- customers buying their gas from Nicor Gas pay this charge as part of their overall Gas Supply Cost. The CSC is billed to customers based on usage. The rate may change each month and it is filed with the ICC.

Delivery charges: Charges that cover the operating and distribution costs of the utility. These charges may also be called distribution charges. Delivery charges recover costs to maintain the pipes, meters and other functions necessary to deliver the gas to your home. They do not include the cost of the actual physical gas. The delivery or distribution charges occur whether or not a customer takes part in the natural gas choice programs.

Fixed price: Under this plan you pay the same price per therm for natural gas each month, but the bill will vary based on the amount of gas used.

Fixed bill: Under this plan, you pay the same amount every month for a set period of time. Changes in your use or the market price of natural gas should not affect the amount you pay. A fixed bill plan may include delivery charges and taxes.

Gas Supply Charge: It is the cost the utility pays for the natural gas it delivers to its customers without "mark up". The price of gas varies by month and is subject to an annual prudency review by the Commission. Peoples Gas and North Shore Gas use the term Gas Charge on billing statements and Nicor Gas uses the term Natural Gas Cost on billing statements.

Market-based or index price: Tying the commodity price for natural gas in a contract to other published prices, such as monthly spot prices for gas. Under these plans, you can expect the price for natural gas to change monthly, weekly or daily depending on the contract. The supplier sets the price per therm each period based on one or more natural gas market benchmarks or indicators. You can expect your price to rise and fall with market prices.

Small commercial customer: A non-residential customer that consumed 5,000 or fewer therms of natural gas during the previous year. Usage by the same commercial customer shall be aggregated to include usage at the same premises measured by one or more meters, and to include usage at multiple premises.

Therm: The basic unit for measuring natural gas use, a heating value equivalent to 100,000 British thermal units.

Transportation Service Credit (TSC): The TSC is a credit for certain costs which are not applicable to Nicor Gas Customer Select customers such as some uncollectible expenses and some storage-related costs. The credit is based on usage.

Variable price: The price per therm may go up or down with market trends. But this type of offer may or may not be tied to a market index. For example, it may be based on the supplier's average cost to purchase natural gas. Consumers should look to specific offers for the terms of variability.