Natural Gas Shopping
What is Natural Gas Choice?
On June 22, 1999, the Natural Gas Choice and Competition Act was
signed into law. Now, all Pennsylvanians, even residential and
small commercial customers, can choose who supplies their
natural gas. Your choice can be based on price, services and
incentives. Competitive offers from natural gas suppliers do not
exist in all areas of Pennsylvania.
In the past, you could not choose your natural gas supplier
(NGS). Your gas was supplied and delivered by the natural gas
distribution company (NGDC) serving your area. Regardless of
whether or not you choose a new supplier, your NGDC will
continue to provide your distribution service, make repairs to
its delivery system and respond to emergencies.
Natural Gas Shopping Statistics - A chart that shows that 296,081 Pennsylvanians have switched their natural Gas Supplier.
Updated January 31, 2012.
How to Shop
Most of the remaining parts of this section are devoted entirely
to how to choose a natural gas supplier (NGS) if one is
available in your area. If you still have shopping questions
after reviewing the content, please call the Public Utility
Commission at 1-800-692-7380. The Office of Consumer
Advocate (OCA) also has a
Shopping Guide for reference.
Questions to Ask When Shopping for a Natural Gas Supplier
- Is the natural gas supplier (NGS) licensed by
the PUC?
- What is the NGS’s price?
- What does the NGS’s price per ccf, Mcf or Dth include? (For example, does the price include
transmission fees, delivery fees, distribution charges, or taxes?)
- Is the NGS’s rate fixed or variable?
- If the rate is variable, how will the NGS’s rate be calculated each month?
- Does the NGS offer any incentives or bonuses?
- How many bills will I receive?
- Is there an agreement to sign and what is the length of the agreement?
- Are there any additional fees for switching or
canceling your NGS?
- If I choose a new supplier, will my NGDC continue to provide payment assistance programs?
Frequently Asked Questions
If one company supplies my natural gas and another provides
my distribution service, who will I call about leaks and
repairs?
You will continue to call your NGDC to report problems and
repairs. The NGDC owns and maintains the natural gas
distribution lines.
Will I receive one bill or two?
In most cases, you should be able to receive one monthly bill
from your NGDC. However, an NGS may want to bill you separately.
This is an important question you should ask the NGS when you
shop.
Do I have to do anything if I want to keep buying my natural
gas from my NGDC?
No.
I am on a special payment plan through my NGDC. Can I take
part in this plan through my new NGS?
Each NGS is different. Before switching, call the NGS you are
considering and ask about the programs they have to meet your
payment needs.
If I choose a new NGS, can I change my mind and choose
another NGS to replace the first one?
Yes. However, you should carefully check the terms of the
agreement, especially for any penalty clauses. Also, you should
contact your NGDC to find out when your NGS will begin providing
service.
If I choose a new natural gas supplier, what part of
my service will change?
There are three parts to natural gas service: Commodity,
Transmission and Distribution. You are choosing the company that supplies your commodity
and transmission.
-
Commodity refers to the natural
gas. It comes from the gas well.
-
Transmission involves moving the natural gas from the gas well through a series of underground
pipelines called the interstate transportation system. The interstate transportation system delivers the natural gas to
your NGDC.
- Distribution refers to the NGDC sending the natural gas to your home through underground
pipelines.
Can everyone shop for a supplier?
All residents of Pennsylvania have the power to choose their natural gas supplier. However, competitive offers may not be
available in all areas. For a list of suppliers, visit the OCA
Shopping Guide.
How do I know that a different supplier will provide reliable service?
If you choose a new natural gas supplier, the quality, reliability, and maintenance of your natural gas service will not change. Your current NGDC will continue to provide the same
distribution service. Plus, gas suppliers must be
licensed by the Public Utility Commission (PUC) to do business in
Pennsylvania.
Where can I get information on NGS prices?
Prices vary. Here is a
list of NGSs serving your territory.
Do I have to have new pipes brought to my home if I choose a NGS?
No. Your NGDC will continue to bring the gas to your home through the existing pipes. The NGDC owns the pipes and
maintains them.
What is the Price-to-Compare?
The price to compare is the unit price charged by the NGDCs and used by consumers to compare prices and potential savings with
other natural gas suppliers. The price to compare may appear on your bill, but if it does not, contact your NGDC.
When will I start receiving service if I choose a new
supplier?
Your choice will typically take effect at the beginning of the first possible billing period following the 10-day waiting
period described in slamming.
Gas Terms
Here is a list of common natural gas terms. The PUC is providing these terms to help consumers, regulators and industry personnel
have a better understanding of the key words and phrases used in the natural gas industry.
Consumer Protections
Customer Information Order
- If the Supplier of Last Resort changes, the new Supplier of Last Resort must notify customers of the change. The new Supplier of Last Resort will provide customers with their
name, address, telephone number and Internet address, if available.
- Definitions of common and consistent terminology must be used in customer communications, including marketing, billing and disclosure statements and use the standard
pricing unit of the NGDC (Mcfs, ccfs or Dths).
- Private customer information may not be released to a third party unless the customer has been notified and agrees to its release.
Licensing
Natural gas suppliers (NGS) offering service in Pennsylvania must be licensed by the Pennsylvania Public Utility Commission.
Low-Income Programs
The law maintains that natural gas distribution companies (NGDCs) must continue to provide protections and services that
assist customers with limited incomes. Click here (link to Assistance page) to get more information about programs for
people on limited incomes.
Slamming
Slamming is the unauthorized transfer of utility services without the customer's permission. To prevent slamming, and regardless of whether you made an agreement with a supplier on
the telephone, or electronically, your chosen supplier must send you the agreement in writing by U.S. mail, hand-delivery or electronically. You have 3 days to accept or decline the
agreement upon its receipt from the supplier. In addition, when your NGDC receives notification of a supplier change, it will
send you a confirmation letter by the end of the next business day following the receipt of the customer’s NGS selection
notification letter. You must respond to the NGDC within 10 days if the information is incorrect. During that 10-day period if
you notify your NGDC you did not want the change of supplier, the supplier change will be cancelled and your account will be
restored without penalty.
PUC Efforts to Improve Natural Gas Competition
The Commission continues to move forward with an action plan developed by a working group of stakeholders to improve natural gas competition. The action plan includes three rulemakings: one on market issues; one on security requirements related to licensing natural gas suppliers; and one on natural gas utility business practices. The Commission expects to initiate a five-year review of efforts to remove barriers to effective competition in June 2013. For more information on these efforts
to make natural gas competition work in Pennsylvania, visit the
SEARCH page.
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