Supplier Gas Pricing Options
The natural gas Suppliers participating in the Choice Gas Program offer customers a variety of pricing options, including the ones below. Suppliers may offer additional pricing options with caps and/or floors that ensure your rate will not go above or below a certain price. Check each of the
Suppliers’ websites for details about these and other pricing options they offer.
Fixed Rate Per Therm
A 12-month gas price per therm that is fixed or “locked-in.” This means that even if market prices change, your gas price per therm is locked-in for the entire Choice Gas Program year. Your gas bill will vary based upon gas usage only.
Market Index Rate
A month-to-month market gas price per therm that changes each month based upon market price fluctuations. This price includes two components that should be considered when comparing market index prices: 1) The Market Index value used, and 2) the Adder.
The Index value of your price follows market changes each month, while the Adder remains constant throughout the Choice Gas Program year.
Market Index Rate with a Cap
A month-to-month market gas price per therm that changes each month based upon market price fluctuations. This price includes three components that should be considered when comparing market index prices with caps: 1) The Market Index value used, 2) the Adder, and 3) the Price Cap. A Cap may apply to either the Market Index value or to the combined total of the Market Index plus the Adder.
Blended Rate
A combination of monthly market index and/or fixed prices per therm. If a fixed price component is included, a portion of your gas usage is locked-in at a fixed price. The gas price for the remaining portion of your gas usage will follow market changes during the Choice Gas Program year.
Fixed Monthly Bill
[Please Note: This is not Budget Billing]
A fixed monthly bill that includes your commodity costs, customer charges, distribution fees and the associated taxes and fees. The fixed monthly amount will not change during the Choice Gas Program year, regardless of changes to gas prices or weather-related gas usage, subject to terms and conditions. Unlike Budget Billing, there is no true-up or balloon payment at the end of the Choice Gas program year.
Average Fixed Rate per Therm
A 12-month gas price per therm that is fixed or “locked-in” based on a weighted average of fixed rate per therm prices during the Selection Period, and market conditions 14 days after the Selection Period ends. This means that even if market prices change, your gas price per therm is locked-in for the entire Choice Gas Program year. Your gas bill will vary based upon gas usage only. This pricing option will be available throughout the Selection Period. The rate will be made available to customers who choose this pricing option 15 days after the Selection Period ends.
Rollover Rate
If you do not submit a selection on or before April 30, 2009, you will roll over to your current Supplier at your current Pricing Option. The price is set by your Supplier after the selection period ends unless otherwise notified by your Supplier.
If you roll over any Pricing Option, your final rate will be determined within 15 days after the Selection Period ends. Therefore, the final rollover price may be different from the prices quoted during the Selection Period.
If you have any questions about these pricing options, please call 1.800.563.0012 or contact the Suppliers.