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EIA web site addresses natural gas customer choice Agency establishes state-by-state review of programs allowing residential users to select supplier, shop prices; Alaska has no program Petroleum News Alaska
State programs to allow residential natural gas users to select their gas suppliers are spreading throughout the country. The availability, characteristics and participation rates of these “customer choice” programs vary widely across states and in some states no program is currently operating. A new Energy Information Administration Web site was established this summer to provide current information on each state program.
The “unbundling” of natural gas purchasing allows customers to chose their own supplier and shop around for competitive prices for natural gas supplies. Local distribution companies still handle the distribution services. Programs for residential customers in individual states range from full choice(in New Mexico, New York and West Virginia, with an additional nine states in the implementation phase) to test or “pilot” programs in 11 states that provide a choice of supplier for some customers. An additional 11 states are considering action on customer choice, while 17 states have thus far taken no action. Consumer reaction has been mixed.
In some states, such as Nebraska, 97 percent of the eligible residential and commercial customers are electing to choose a supplier. In other states(such as Indiana and New Jersey), the participation is 2 percent or less of those eligible.
With the restructuring of the natural gas industry, the services required to supply natural gas to consumers (buying the gas commodity, then transporting and distributing the gas to individual customers) have been divided, or unbundled, into various components that can be purchased separately. Large commercial and industrial consumers have had the option of purchasing the natural gas separately from natural gas services for many years. State regulators and lawmakers, who are responsible for designing and implementing retail restructuring programs, have moved more slowly in implementing customer choice for residential and small commercial consumers, traditionally known as core consumers, until they could ensure reliable service.
Retail unbundling in Alaska The EIA reports that Alaska has no unbundled service program for residential customers, and none is being considered by regulators or the Legislature. Only commercial and industrial customers are able to purchase gas directly and have it transported by utilities.
EIA state data: In 1997, Alaska had 83,596 residential and 12,945 commercial customers who consumed 15 billion and 27 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from local distribution companies by residential and commercial customers were $3.77 and $2.44 per thousand cubic feet, respectively. The average city gate price in the state was $1.81 per thousand cubic feet.
The status of residential customer choice programs in each of the 50 states and the District of Columbia is available on the EIA web site at:
http://www.eia.doe.gov/oil_gas/natural_gas/restructure/restructure.html
EIA also has a web site that provides information about various aspects of the restructuring and deregulation of the electric power industry. For information on developments, by state, in the electric power industry, visit the EIA web site at: http://www.eia.doe.gov/cneaf/electricity/page/restructure.html
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