THE BAY CITY GAS COMPANY  Board of Trustees will meet with City Council on Tuesday, July 27, 5:00 pm to discuss this ” Notice of Intent to make a Rate Change” effective August 1, 2021

Standard Gas Service Account                                   $19.00/mo

Residential – not to exceed 50 MCF/mo.

R-1 Base Rate 1-50,000 Cubic Feet (50 MCF/mo)    $ 8.05 Per MCF plus Cost of Gas

In-City Commercial & Industrial for Monthly Consumption

in MCF/mo

C-1                                         1 to 50                          $8.05 per MCF plus cost of gas

C-2                                         51 to 832                       $7.35 per MCF plus cost of gas

C-3                                         833 to 4,166                  $6.20 per MCF plus cost of gas

C-4                                         4,167 to16,666              $5.50 per MCF plus cost of gas

C-5                                         16,667 to 33,332           $5.00 per MCF plus cost of gas

C-6                                         33,333 to 66,666           $4.50 per MCF plus cost of gas

C-7                                         66,667 or more             $4.25 per MCF plus cost of gas

Outside City Limits Commercial & Industrial

(w/o Economic Development Agreement) for Monthly Consumption

in MCF/mo

CO-1                                      1 to 50                          $8.05 per MCF plus cost of gas

CO-2                                      51 to 832                       $7.85 per MCF plus cost of gas

CO-3                                      833 to 4,166                  $6.53 per MCF plus cost of gas

CO-4                                      4,167 to16,666              $5.73 per MCF plus cost of gas

CO-5                                      16,667 to 33,332           $5.15 per MCF plus cost of gas

CO-6                                      33,333 to 66,666           $4.58 per MCF plus cost of gas

CO-7                                      66,667 or more             $4.29 per MCF plus cost of gas

For the purposes of this rate, “Cost of Gas” is defined as the amount paid by the Bay City Gas Company to its supplier(s) inclusive of all charges, transportation fees, and service fees;  The Cost of Gas may include a factor for recoupment of: a.) fees, taxes or rates assessed upon the Gas Company by the State or Federal regulatory authorities; b.) lost and unaccounted for gas volumes; c.) gas used by City of Bay City and Bay City Gas Company operations, d.) Replenishment of financial reserves and debt service arising from cost of gas items unbilled or unpaid in the current month; and e.) The cost of reliability services or infrastructure intended to reduce the cost of gas, or the volatility thereof. The Cost of Gas does not include promotional rates for special air conditioning, electric generation, or other promotional load.  The Cost of Gas is not reduced by bond proceeds or municipal tax discounts. The Cost of Gas for meters read during the calendar month shall be determined by the management of the Bay City Gas Company on or before the fifth working day of that month and will be available to the public from the offices of the Gas Company.

The average monthly bill for 3,756 base (R-1, C-1, and CO-1) gas customers will increase a net 26.6% or $8.00 due to this rate change.

The average monthly bill for 291 (commercial) C-2 gas customers will increase a net 51.3% or $101.00 due to this rate change.

The average monthly bill for 11 (small industrial) C-3 gas customers will increase a net 58.6% or $448.32 due to this rate change

The average monthly bill for 38 Public Authority Gas Customers will increase a net 53.0% or $154.32 due to this rate change.

The annual revenues of the Bay City Gas Company due to this rate change are projected to increase 33.9% or $851,416  beginning in 2022.