Gas Companies (Industry: homes, buying, utilities)

[hebadin]

Hi,

can anyone tell me how does it works with the gas companies?

Currently I have Dominion Peoples as gas company but I'm moving to a address where Dominion Peoples does not offer services and only one company deliver gas (Equitable Gas). So they tell me I have no other choice but to stop services with Dominion and open a new account with Equitable at the new address.

Does this means I have no other choice than just to accept the excessively high rates of Equitable gas? I find it extremely unfair. Is there some alternative?

Thanks

[slamont61]

If you want gas service you are stuck. You could always convert the furnace to Oil or put in a Wood Burner although you area may not allow it.

You're pretty much stuck with what ever company services the area - Gas is a Utility and is regulated.

[BrianTH]

The distribution part of utilities fall into the category sometimes known as "natural monopolies" (generation is a little different), so this is indeed what you have to live with in most cases: a monopolist. The public policy answer is to regulate them, including with respect to pricing. That doesn't always work as well as one might hope, but no one has come up with a better idea.

[Honest Bob]

My advice is to move where it suits you and not to set your sites on any one place that does not suit your needs.

There might be a program in place that does allow you to choose between utility service providers.

You would not be physically buying from a different company, but might be a in co op situation where one company buys from another company and can pass on the savings of buying in bulk.

Not to say that it will always be cheaper, because their price is locked in long before winter sets in and once the price is locked in you are forced to pay that price regardless of what it might be in the future.

Some space heaters, electric heaters, propane heaters, kerosene heaters - are not any cheaper and in the long run when you combine the price of the heater into the equation - is actually more expensive then just paying the gas bill.

All electric heaters produces the same about of BTU's per a kilowatt, regardless of if they are put in a Amish cabinet or bought off the bargain rack at Big Lot's. You do not get something for nothing and while you are at it - just think about it like this. Amish people has no electricity in their homes! What kind of person would go out and buy something that is built by someone that doesn't use it themselves.

It would be like buying bread from people who does not eat bread.

[hebadin]

Hi,

thanks for your replies.

I was trying to find in internet about the way gas companies work and how they divide the market but haven't much success. Are you sure there is no other way than to pay Equitable for the gas it provides? In this official Equitable web page you can read:

"A Monthly Service Charge of $13.25 is added to your bill whether you choose a Supplier or continue to have Equitable Gas purchase and deliver your natural gas."

and also

"The Balancing Charge will apply regardless of who supplies your gas, and is part of Equitable's Supply Charge. If your gas provider is not Equitable Gas Company, the Balancing Charge will be added to your Distribution Charge."

Doesn't this means that I can actually choose the supplier as long as I pay Equitable $13.25 for monthly service?

[greg42]

You can choose the supplier as long as there is another supplier that will service you there. Sometimes there isn't. For a while when the gas prices were up significantly, the info on alternative suppliers was plentiful. Now it seems to be nonexistent.

[robrobrob]

Here is what I know, Equitable supplies the gas but Dominion can service the customer if you want. Call Dominion and ask about their rates. What they do is buy gas ahead of time and you can therefore lock in your rate for the year. At times this makes sense and at other times it doesn't. Dominion was very helpful when I called them and they told me it wouldn't pay to switch. As a kicker, the offer a discount on electricity if you switch.

[hebadin]

Originally Posted by robrobrob

Here is what I know, Equitable supplies the gas but Dominion can service the customer if you want. Call Dominion and ask about their rates. What they do is buy gas ahead of time and you can therefore lock in your rate for the year. At times this makes sense and at other times it doesn't. Dominion was very helpful when I called them and they told me it wouldn't pay to switch. As a kicker, the offer a discount on electricity if you switch.

I've called Equitable and they told me more or less what you've written. What you have to compare to know if it is convenient to change the supplier is the commodity rate. Independent of the supplier, Equitable adds to the commodity rate a a gas cost adjustment and a distribution charge.

For those interested there is a document of the PA Office of Consumer Advocate which compares all rates:

http://www.oca.state.pa.us/Industry/...ppingGuide.pdf