Minnegasco received approval from the Minnesota Public UtilitiesCommission (MPUC) for a fixed-rate pilot program scheduled to beginNov. 1 in Mankato and North Mankato, MN. The program offers about12,700 residential and 1,600 commercial customers the option ofbeing billed a fixed rate for gas for one year. If successful, theprogram could be expanded to other communities served byMinnegasco.

Gas costs account for about 70% of a customer bills. Theremainder is for transportation and delivery. Customers normallyare charged the fluctuating market price for gas. Those whoparticipate in the pilot program, however, will be charged a setunit price for gas for one year, minimizing seasonal costfluctuations. “The fluctuating cost of natural gas often makes itdifficult for customers to budget accurately for the cost of theirenergy bills,” said Tracy Bridge, director of regulatory and energyservices.

The fixed-rate pilot is separate from Minnegasco’s budget plan,which spreads a customer’s entire projected bill evenly across 12months for even payments year-round. Customers participating in thefixed-rate pilot program may also use the Budget plan.

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