PA Office of Consumer Advocate’s

Natural Gas Shopping Guide

Residential Natural Gas Shopping Guide

by the

Pennsylvania Office of Consumer Advocate

Introduction

   The Pennsylvania Office of Consumer Advocate is a state office whose job is to represent Pennsylvania consumers in matters involving their utility services. We prepared this guide to help residential consumers understand and review their choices for a natural gas supplier.

   The gas lines that run down your street and into your home are still owned and operated by your local natural gas distribution company. The rates for that distribution part of your service are regulated by the Pennsylvania Public Utility Commission. But many Pennsylvania consumers can choose the company that provides the gas supply portion of their natural gas service through their regulated company’s distribution lines.

   Only suppliers licensed by the Pennsylvania Public Utility Commission can sell natural gas supply to consumers in Pennsylvania. Some suppliers may offer natural gas supply service that is cheaper than the gas supply you normally would buy from your local natural gas distribution company. Other suppliers may offer longer or shorter contracts for service at a fixed or variable price. The price of gas from your local natural gas distribution company must be approved by the Public Utility Commission and typically changes on a quarterly basis, depending on what the company pays for gas in the wholesale natural gas market.

How To Shop for Natural Gas

    A “price to compare” is the amount that you will pay for your gas supply if you continue to buy from your local natural gas distribution company. Each regulated local gas utility has its “price to compare” in either cents per ccf (100 cubic feet) or dollars per Mcf (1,000 cubic feet). So, for example, a price of $5.00 per Mcf is comparable to a price of 50 cents per ccf. If you have natural gas heat, you will use much more natural gas in the winter months than you do in the summer. The best place to find your monthly usage is on your monthly gas bills. Once you know your utility’s price to compare and your typical monthly usage, you can begin to shop for your natural gas supplier. By comparing the supplier’s price with your natural gas distribution company’s price to compare, you can find out whether or not you will save money by switching.

   As this table shows, if your natural gas distribution company’s price to compare is $4.00 per Mcf and the competing natural gas supplier is charging $3.00, then you can save $1.00 on every Mcf you use. If you use 10 Mcf in a month, then you will save $10.00 that month.

How To Use This Guide

    We collected information about Pennsylvania’s natural gas distribution companies and the natural gas suppliers offering service to residential customers. Attached is a chart showing the utility company’s price to compare, and the comparable price being charged by the natural gas suppliers offering service in that area. We also list the monthly bills for suppliers’service at a typical usage level. If a supplier charges a monthly or annual fee, we spread that charge over the usage shown. For example, if a supplier charges a $5.00 monthly fee, plus $3.00 per Mcf, and if a consumer uses 10 Mcf, then the monthly bill in our example would be $35.00.

   It is also important to note that we have only included the supply portion of your natural gas bill in our comparison charts. All customers will also have to pay other charges to their natural gas distribution company to have the natural gas delivered to their home. Those charges are the same regardless of who supplies your natural gas and will not affect the amount of your monthly savings.

Now It's Your Turn

   This is only a guide to start you in the shopping process. We have tried to gather accurate information from all the residential suppliers that we are aware of in each area, but there may be other offers available, so please ask the supplier when you contact them. Also, prices change. You should always contact the supplier directly to make sure that you understand the price you have to pay plus all other contract terms, such as the length of the contract, whether the price is fixed or variable, and any other fees for switching to or from a particular supplier. Your natural gas distribution company’s price to compare may change quarterly, too.

   There have been very big changes in natural gas prices in the last few years. Local gas companies and gas suppliers have had to make many adjustments in their rates for customers. Some adjustments happen more quickly than others. You should compare rates carefully to make sure you are getting a good deal.

Disclaimer of Liability and Endorsement

   Neither the Pennsylvania Office of Consumer Advocate nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of the attached charts.

   Reference in the charts to any specific commercial products, process, or service by trade name, trademark, or otherwise does not constitute or imply its endorsement or recommendation by the Pennsylvania Office of Consumer Advocate. The information contained in the charts shall not be used for advertising or product endorsement purposes. The Pennsylvania Office of Consumer Advocate is not responsible for the contents of any off-site Internet web pages referenced.

We can help

   If you have any questions, please contact our office by calling our toll free number 800-684-6560 (Pennsylvania consumers only), or (717) 783-5048 or by email at consumer@paoca.org. The Office of Consumer Advocate also has a website at www.oca.state.pa.us that has other educational material available.

   You can obtain a current list of suppliers that are licensed to serve in your area, by visiting the Pennsylvania Public Utility Commission website at www.puc.state.pa.us or by calling toll-free at 1-800-692-7380. However, please keep in mind that a company may be licensed but not actively offering service.