How to Choose a Natural Gas Supplier
Consumers used to have two choices in natural gas suppliers: the local utility or going cold. Since deregulation in the 1990s, however, consumers in a growing number of states now can choose between a wide variety of suppliers, with the utility still responsible for distributing the product. These suppliers come with a variety of pricing schemes, promises and requirements. They often contact consumers directly, offering enticing deals to get them to switch to their supply. Before signing any contracts, however, consumers should arm themselves with thorough information about every available supplier and how they fit their budgetary needs. Does this Spark an idea?
Instructions
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Make a list of all natural gas suppliers in your area. In most cases, your state utility commission will maintain a list of suppliers available to you. The commissions might even maintain a price comparison chart of suppliers, but you'll want to do your own research to make sure the information is up to date. A full list of links to state utility commissions can be found on Independent Energy Consultants' website, found in the resources section below.
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Prepare a list of questions to ask energy suppliers. Critical questions include whether the supplier is certified by the state utility commission, the price of gas per unit, whether the price is fixed or dynamic and whether you'll be billed by the distributor or separately by the supplier. Other questions to ask include: whether there's a switching or cancellation fee, details of any incentive programs, how long the rate will remain in effect and whether there are any add-on services. Depending on your needs, you might want to ask whether the supplier offers any financial assistance programs.
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Contact each supplier and make careful notes of their answer to each question. Don't forget to check with your local public utility for its supply prices as well. Immediately eliminate any supplier not certified by your local utility commission.
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Make a chart comparing the price of each available supplier. Be sure the prices are all in comparable units. Some might measure in price per hundred cubic feet of gas while others might measure per thousand cubic feet, for example. They also might price per dekatherm, which is equivalent to about 970 cubic feet. Check your most recent gas bills to determine your usage, and use that number to determine the price you would pay with each supplier per month. Use those prices, along with your other note such as special incentives, to determine the best fit for your needs.
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Call your selected supplier to sign up with them. Review their contract carefully to make sure the terms match up with what they previously told you. The supplier in most cases will contact your local natural gas utility to begin service. The utility will notify you of this in a letter, which you should review carefully to be sure the supplier information is correct.
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Monitor your gas bills to be sure the supplier is following all agreed terms. Repeat this process annually or when your contract is nearing expiration to be sure you always have the ideal supplier.
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Tips & Warnings
Look beyond price. If a supplier costs a few dollars more a month but provides an incentive you will use often--airline reward points, for example--it might be worth the extra money.
Regardless of your supplier, always contact your local gas utility for any safety concerns, such as a suspected gas leak.
References
Resources
- Photo Credit natural gas meter image by Tijara Images from Fotolia.com
