Consumer Education Table of Contents
Understanding Your Natural Gas
Bill
Your natural gas bill has three main components – the
delivery service charge, gas supply charge and taxes. Residential
and small business customers in some areas of Illinois have the choice to
purchase their gas supply from their utility or an Alternative
Gas Supplier (AGS).
Regardless of your choice of supplier, your local gas utility
will continue to deliver the natural gas to your house or
business. The delivery of natural gas to your house or business will not be
interrupted when you switch gas suppliers.
Natural gas utilities offering AGS choice programs have
additional information regarding the charges on your gas bill at the following
links.
Nicor
Gas - Understanding Your Bill - Customer Select Program
North
Shore Gas – Rates and Charges
Peoples
Gas – Rates and Charges
The Delivery Charge
This is the price you pay to your local gas utility for the
cost of transporting or delivering natural gas from the City Gate
to your home or business regardless of whether the gas is purchased from the
utility or an AGS. You cannot choose who provides your natural
gas delivery service. This charge is to compensate your local
utility for the cost of maintaining the lines and transporting natural gas to
your home or business. It includes charges for things like meter
reading, billing, equipment and maintenance and is regulated by the
Illinois Commerce Commission (ICC). The local utility continues to provide
this service regardless of whether the gas is purchased from the
utility or an AGS.
The Gas Supply Charge
In certain parts of Illinois, customers can choose who they
want to purchase their natural gas from. The gas supply charge is
the price you pay for the natural gas commodity consumed in your home or
business in a given month. For a residential customer using
natural gas to heat a home, the supply charge will account for approximately 75
percent of your bill on an annual basis.
If you purchase your gas supply through the local utility,
the utility uses a regulatory mechanism called the Purchased Gas
Adjustment (PGA) to compute your monthly gas supply cost. Under the PGA
mechanism, the price you pay per therm of gas consumed can change
monthly. The PGA includes, among other items, the anticipated cost of gas for
the month as well as adjustments from prior periods to true-up
under and over recoveries. The gas utilities' PGA filings undergo an annual
prudency review by the ICC and gas utilities are not permitted to
mark up the cost before passing that price along to its customers. Nicor Gas
customers will see the gas supply charge on their bill as the
Natural Gas Cost. North Shore Gas and Peoples Gas customers will see the gas
supply charge on their bill as the Gas Charge.
If you choose to purchase your gas from an AGS, the gas
supply will be charged at the rate you agree upon with the
supplier in your contract. The rates charged by an AGS are not regulated or
subject to review by the ICC.
State and Local Taxes
State and Local Taxes are also included on customer bills.
The taxes that apply may differ depending on whether you purchase
gas from the utility or from and AGS.
[Back
to Top]
What is Natural Gas
Choice?
In Illinois, residential and small business customers of
Nicor Gas, North Shore Gas, and Peoples Gas utilities currently
have the option to purchase their natural gas supply from an Alternative Gas
Supplier (AGS). Whether you decide to purchase your natural gas
supply from your local gas utility or switch to another company for your gas
supply, your local natural gas utility will continue to deliver
the gas to your home or business. The natural gas itself, meets the same
requirements and pipeline standards whether purchased from the
utility or an AGS. If you are considering switching natural gas suppliers,
please take a moment to review information on this website to
help you better understand your choices. The ICC is committed to ensuring
you have the necessary information to make an informed decision about
choosing your natural gas supplier.
[Back
to Top]
Consumers May Continue to
Purchase Natural Gas from their Utility or Enroll with a Supplier
Where choice programs are available, customers may choose to
continue to receive their natural gas supply from their local gas
utility or switch to an AGS. If you wish to continue receiving your gas supply
from the utility, you don’t have to do anything. If you want to
consider purchasing your natural gas from an alternative supplier, the ICC
website contains a list
of certified AGS and their current offers. You may also receive
direct solicitation from an AGS regarding services available.
Customers are encouraged to review the information on this
website before agreeing to switch. If you decide to switch to an AGS after
considering the various offers available, you must contact that
AGS to enroll. It doesn’t matter to the utility whether you purchase your gas
supply from them or an AGS, because utilities are required to
pass their gas supply cost on to customers at the price they pay with no markup.
[Back
to Top]
No Matter Your Choice, the
Utility Is Responsible for Safe and Reliable Delivery and Service
Whether you stay with your local gas utility or switch to
another company for your gas supply, your local utility is responsible
for responding to your natural gas safety concerns and providing reliable
natural gas delivery service. If you smell gas or have a gas
emergency, you should always call your local gas utility.
[Back
to Top]
ICC Regulation of Alternative
Gas Suppliers
While the ICC does not regulate the prices offered by AGS,
the ICC does regulate supplier sales and marketing practices to
residential and small commercial customers and assists with customer disputes.
Alternative Gas Suppliers offering service to residential and
small commercial customers (with consumption of less than 5,000 terms annually)
must be certified by the ICC. These suppliers must follow strict
procedures when enrolling a customer to ensure the customer understands the
terms of their agreement and that a record of the customer’s
authorization is kept.
[Back
to Top]
Consumer Protection
All Alternative Gas Suppliers must be certified by the ICC to
provide service to residential and small commercial customers.
A new law (Public Act 95-1051) which took effect April 10,
2009 established consumer rights and protections that include:
Consumer Rights
- Consumers have the right to rescind their agreement
without penalty within 10 business days after the date on the gas
utility notice to the customer.
- A consumer may not be charged an early termination
penalty that exceeds $50 and all early termination penalties must be
disclosed to consumers.
- A consumer may terminate an agreement with an AGS
without incurring an early termination penalty within 10 business days
of the date the first bill is issued. This does not relieve the
customer of the obligation to pay for services already
received under a contract which was entered into lawfully.
- Consumers who prefer not to receive information or
solicitations from suppliers may request to be added to their gas
utility's "Do Not Contact List". AGS and their sales agents are
prohibited from any direct marketing or soliciting consumers
on the list. Consumers may use the following phone numbers to register with
their gas utility's "Do Not Contact List":
- Nicor
Gas 1-888-642-6748
- North Shore Gas 1-866-556-6004
- People’s
Gas 1-866-556-6001
Obligations of AGS
- An AGS must obtain customer authorization before
switching a customer to another supplier. At a minimum, the authorization
must include the identity of the customer, confirmation that
the person is authorized to make the change, confirmation that
the person wants to make the switch, address where service is to be
provided, the price of the service and the material terms
and conditions of the service including any early termination fee.
- Before switching a customer, an AGS must clearly and
conspicuously disclose in writing the prices, terms and conditions of
products and services.
- An AGS must disclose a customer’s right to rescind an
agreement. The AGS must disclose that the gas utility will send a notice
confirming the switch, that the customer has 10 business days
from that date to rescind the switch, that the customer can
contact the utility or the AGS to rescind the switch, and the contact
information for the utility.
- An AGS is required to disclose the amount of any
termination penalty or fee that applies. If an early termination fee applies,
the AGS must allow the customer to cancel the contract
without any termination fee or penalty within 10 days after the date
the first bill is issued. This does not relieve the customer of the
obligation to pay for services already received under a
contract which was entered into lawfully.
- An AGS must comply with Illinois law regarding
solicitation and sales verification requirements applicable to in-person
solicitation (including door-to-door solicitation),
telemarketing, consumer initiated calls, and internet enrollment.
- Additional solicitation and sales verification
requirements apply to in-person and telephone solicitations.
- An AGS soliciting customers in-person,
including door-to-door solicitation, must clearly and conspicuously disclose
the salesperson's name and company's address,
phone number and website; contact information for the ICC.
- An AGS soliciting customers by telephone
must disclose the name of the person making the solicitation, the name
of the AGS, the purpose of the call and ask permission
to continue the call.
- An AGS is prohibited from misrepresenting its
affiliation with the gas utility, governmental bodies and consumer groups.
An AGS is required to establish a call center and provide a
toll-free number for customers to resolve complaints.
- An AGS may not obligate a customer to the terms of the
agreement if that customer moves outside Illinois, to a location without
a transportation service program or to a location where the
customer will not require natural gas service. This does not
relieve the costomer of their obligation to pay for services already
provided.
- An AGS may not assign the customer’s agreement to
another AGS unless that AGS is certified by the ICC, the rates and terms
of the agreement do not change during the remainder of the time
covered by the agreement, and the customer is given no less
than 30 days prior written notice of the assignment including contact
information for the AGS assigning the contract and the new
AGS.
[Back
to Top]
Current and Historical Utility
Gas Supply Charges
The majority of your gas bill reflects the cost of the
natural gas commodity you consume. The price that gas utilities in
Illinois pay for natural gas is referred to as the Purchased Gas Adjustment
(PGA). It includes the price utilities anticipate to pay to
purchase gas in the wholesale market, including the costs of transportation and
storage services, and any reconciliation from prior months. These
charges can vary from month to month. Gas utilities do not profit from the price
of gas; it must be passed on to consumers without markup. The PGA
may also be noted on your gas bill as the Natural Gas Cost or the Gas Charge.
To help customers better understand how the cost of natural
gas fluctuates, the ICC has posted current and historical gas
supply charges for each gas utility. Below are charts showing the utilities' gas
supply charges for the current and previous two calendar years as
well as charts showing the historical gas supply charges for each utility
for the past 10 years.
Nicor Gas Historical Natural Gas Cost Rates per
therm
| |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2012 |
$0.4400 |
$0.3300 |
$0.3400 |
$0.2800 |
$0.2200 |
$0.3100 |
$0.3400 |
$0.3900 |
$0.3900 |
$0.3900 |
$0.4100 |
$0.4500 |
| 2013 |
$0.4200 |
$0.4000 |
$0.4200 |
$0.4800 |
$0.5300 |
$0.5000 |
$0.4100 |
$0.3800 |
$0.3600 |
$0.3900 |
$0.4100 |
$0.4000 |
| 2014 |
$0.4600 |
|
|
|
|
|
|
|
|
|
|
|
North Shore Gas Historical Gas Charge Rates per
therm
| |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2012 |
$0.4765 |
$0.4128 |
$0.3745 |
$0.3400 |
$0.3233 |
$0.3395 |
$0.3630 |
$0.3988 |
$0.4212 |
$0.4358 |
$0.4777 |
$0.4453 |
| 2013 |
$0.4557 |
$0.4536 |
$0.4310 |
$0.4717 |
$0.5138 |
$0.5387 |
$0.5757 |
$0.5882 |
$0.4865 |
$0.4890 |
$0.4901 |
$0.4790 |
| 2014 |
$0.5200 |
|
|
|
|
|
|
|
|
|
|
|
People's Gas Historical Gas Charge Rates per
therm
| |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2012 |
$0.4190 |
$0.3631 |
$0.3333 |
$0.3072 |
$0.2914 |
$0.3098 |
$0.3177 |
$0.3471 |
$0.3779 |
$0.3794 |
$0.4121 |
$0.3765 |
| 2013 |
$0.4110 |
$0.4097 |
$0.3922 |
$0.4286 |
$0.4692 |
$0.5130 |
$0.5490 |
$0.5552 |
$0.5509 |
$0.4735 |
$0.4499 |
$0.4437 |
| 2014 |
$0.4773 |
|
|
|
|
|
|
|
|
|
|
|
View
the 2005-2014 Gas Supply Rates by Utility
[Back
to Top]
Important Information to
Consider When Shopping
For a residential customer using natural gas to heat a home,
approximately 75 percent of your average annual natural gas bill
is comprised of the gas supply charge which is based on two factors – the amount
of natural gas you use and the price you pay for natural gas.
It is important to know how much gas you use each month.
Natural Gas usage is measured in therms on your bill. You can get this
information from your local gas utility; it is also included on each
billing statement from the utility.
Gas usage varies sharply in different seasons. The average
residential customer in Illinois will consume nearly 75 percent of
their total natural gas supply from November through March. Therefore, the
supply charge for natural gas will have a much greater effect on
your bill in the winter months than the summer months. The information and bar
graph below shows how gas consumption for the average residential
customer varies each month and the impact the consumption would have on a bill
if the supply price remained constant. Natural gas consumption
and the corresponding gas supply charges can be nearly ten times higher in
winter months than in summer months.
| Month |
Therms Consumed |
Price per Therm |
Gas Supply Charge |
| Jan |
215 |
$.50 |
$107.50 |
| Feb |
171 |
$.50 |
$85.50 |
| March |
135 |
$.50 |
$67.50 |
| April |
73 |
$.50 |
$36.50 |
| May |
36 |
$.50 |
$18.00 |
| June |
26 |
$.50 |
$13.00 |
| July |
24 |
$.50 |
$12.00 |
| August |
23 |
$.50 |
$11.50 |
| September |
26 |
$.50 |
$13.00 |
| October |
58 |
$.50 |
$29.00 |
| November |
108 |
$.50 |
$54.00 |
| December |
193 |
$.50 |
$96.50 |
It is important to know what your local gas utility charges
for the supply of natural gas. This price is indicated as the
utility's Natural Gas Cost or Gas Charge and changes monthly. It is the
projected cost the utility pays for the natural gas plus any
reconciliation from prior periods and is passed on to the customer with no mark
up. Historical gas supply rates for your utility can be found
here.
[Back
to Top]
How to Compare Prices
The ICC provides price
comparison worksheets to help you compare supply options from your
local utility and AGS. It is important to understand the
different types of offers available from suppliers and to decide if you prefer a
fixed price or variable price. Some offers have lower
introductory prices or prices that guarantee savings over the utility price for
a certain period of time. As always, it's important to ask
questions and make sure you understand the price, terms and
conditions before agreeing to a contract.
What is a variable price
plan?
On a variable price plan, the price per therm can change
monthly, weekly or daily depending on market conditions or other
factors. Consumers should look to specific offers for the terms of variability.
It may include a termination fee up to $50 if a consumer breaks
the contract before the plan's term expires.
What is a fixed price
plan?
A fixed price plan allows you to contract with a gas supplier
for natural gas to be billed at the same amount per therm for a
specified period of time. Some fixed price contracts include a termination fee
up to $50 if a consumer breaks the contract before the plan's
term expires.
What is a fixed bill
plan?
On a fixed bill plan, a customer will pay the same amount
every month for a set period of time. Changes in your use or the
market price of natural gas should not affect the amount you pay. The amount
billed is based on the customer's past usage history. A fixed
bill plan may include delivery charges and taxes. It may include a termination
fee up to $50 if a consumer breaks the contract before the plan’s
term expires.
[Back
to Top]
Availability of "Do Not
Contact List"
Customers who prefer not to receive information or
solicitations from suppliers may request to be added to their gas
utility's "Do Not Contact List". Alternative Gas Suppliers and their sales
agents are prohibited from any direct marketing to consumers on
the list or soliciting consumers on the list. Consumers may use the following
phone numbers to register with their gas utility's "Do Not
Contact List":
- Nicor
Gas 1-888-642-6748
- North Shore Gas 1-866-556-6004
- People's
Gas 1-866-556-6001
[Back to
Top]
Procedures to Address
Complaints
Each AGS is required to have a complaint resolution process
in place. A toll free number for the AGS' customer call center
can be found on your bill. If you are not satisfied with the outcome after
contacting the AGS, you may request assistance from the ICC,
Illinois Attorney General, or the Citizens Utility Board (CUB).
[Back to
Top]
Alternative Gas Suppliers'
Complaint Summary
The Illinois Commerce Commission maintains a summary of
consumer complaints it receives from residential and small
commercial customers regarding Alternative Gas Suppliers. The summary provides
the total number of informal complaints and formal complaints
reported to the ICC quarterly. Complaints are organized in three
categories: marketing and sales; contracts and billing; and customer service.
All Alternative Gas Suppliers with certificates to serve
residential and small commercial customers in Illinois are included
in the summary, regardless of whether they are currently marketing to
consumers or serving customers. The summary provides the total
number of complaints received for each Alternative Gas Supplier and does not
account for the number of customers served.
[Back
to Top]
List of Alternative Gas
Suppliers That Have Failed to Provide Service in Accordance with the Law
Pursuant to Section 19-125 of the Public Utilities Act, the
Illinois Commerce Commission lists all certified alternative gas
suppliers serving residential and small commercial customers that have been
found in the last 3 years by the Commission to have failed to
provide service in accordance with the Public Utilities Act:
[Back
to Top]