How is natural gas priced?

The pricing of natural gas depends on three basic factors: how the gas is measured, supplier fees and distribution.

• How the Gas Is Measured - It's important that when a prospective gas supplier provides you with a price, you understand how that price was calculated. Most often, natural gas sold to retail consumers is priced in cents per therm (for example, $0.24 per therm). Wholesale prices are usually provided per dekatherm or MMBtu ($0.24 per therm is the same price as $2.40 per dekatherm or MMBtu). You might notice on your WPS bill that the gas you use is actually metered in cubic feet. This measure of volume is converted to a measure of energy (therms) by the utility and then priced. Most suppliers will quote you a price per therm, but if you get a price per cubic foot, you'll want to ask the prospective supplier to convert it for you.
• Supplier Fees - Some alternate gas suppliers charge their customers a management or administrative fee in addition to the cost of the gas. Others include any management or administrative fees in the cost of the gas. You'll need to ask prospective suppliers what, if any, additional fees will be charged to initiate service and on a monthly basis thereafter.
• Distribution - Because WPS will always be responsible for the system that distributes natural gas in this service area, we will continue collecting distribution charges from customers in the Gas Choice program. These charges will be a constant, regardless of whether you choose an alternate supplier for the gas you use. When talking with prospective suppliers, you won't need to negotiate distribution costs. If a prospective supplier quotes you a price that includes distribution charges, ask the supplier to break out the gas charge alone.

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With Gas Choice, I'll pay the supplier of my choice for natural gas, and I'll pay WPS for delivery of that gas over local distribution lines. Are there any other costs involved?

Your natural gas supplier could charge an administrative or management fee in addition to charges for your gas supply. You'll want to check with prospective suppliers to find out what fees are involved. At WPS, you'll pay a distribution charge for delivery of the gas to your facility. This charge varies based, for example, on the volume of gas you have delivered. There's also a Customer Charge from WPS, which covers the cost of providing safe, reliable service and maintaining meters and related equipment. This is a fixed monthly charge for each customer.

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If I sign a contract with an alternate gas supplier, when will I start to see savings, and how long will I be required to stay with that gas supplier?

Your level of savings and length of contract with an alternate supplier will need to be negotiated between you and the supplier. It's important to remember, however, that if you do sign up with an alternate supplier and later decide to return to WPS for your gas supply, you'll need to let us know within the following timeframe: Notify WPS by March 1 of a given year to return to WPS gas supply on or after Nov. 1 of that year.

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How much can I expect to save with a supplier other than WPS?

Your savings will depend on the supplier you choose and the programs that supplier offers. Some suppliers may offer a flat rate for gas. Others may offer guaranteed savings or package incentives. Always remember that gas prices may fluctuate in a competitive market, so your total savings could vary over time, depending upon your supplier's plan and variations in the market price of natural gas.

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Are savings guaranteed with Gas Choice?

Savings are guaranteed only if the natural gas supplier you choose provides a guarantee. WPS can't guarantee any offer made by an alternate supplier.

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