In 1999, Colorado enacted a law that will change the way residential and small business consumers buy natural gas service in the future. The Colorado law permits greater competition and choice in some portions of your natural gas service. The Office of Consumer Counsel (OCC) believes residential and small business consumers can benefit from these changes, but only if they are able to make informed choices.

This fact sheet answers some basic questions about the changes that will occur in the natural gas industry. For additional information, you can call the OCC at 303-894-2121.

WHAT IS GAS CHOICE?

Soon, you will be able to choose the company that provides you with your supply of natural gas. Gas suppliers will compete to supply you with natural gas. In the future, you may pay a different supplier than you do now for the "Natural Gas" charge on your energy bill. Your monopoly gas utility will still distribute that gas to your home or business at a price regulated by the Public Utilities Commission.

Today, you buy natural gas service from your monopoly gas utility, also called a local distribution company or LDC. Your gas utility buys natural gas from producers on your behalf, contracts with interstate pipeline companies to transport the gas, and then takes the gas from the pipeline company and distributes it to you. Your gas utility also meters and bills you for natural gas service.

WHEN WILL I BE ABLE TO MAKE THIS CHOICE?

The new law allows gas utilities to decide whether and when to submit a gas choice plan for approval to the PUC. We expect some consumers to have a choice of gas suppliers by the year 2002. The investor-owned gas utilities in Colorado who may submit voluntary plans for gas choice are: Public Service Company, Greeley Gas, Kinder-Morgan (KN Energy and Rocky Mountain Natural Gas), Peoples Natural Gas, Citizens, Eastern Colorado, Colorado Natural Gas, and ComFurT Gas. Some cities also provide natural gas service to their citizens, but their voluntary plans will be submitted to their municipal governing body for approval.

WHAT BENEFITS WILL I GET FROM NATURAL GAS COMPETITION?

Some companies may be able to provide lower-priced gas supply than you would receive under the current monopoly system. Others may offer a variety of gas purchase options to give you more choice. For example, some suppliers may offer plans in which gas prices change frequently like the way gasoline does at the filling station. Others may offer plans in which the price does not vary month-to-month.

WHAT IF I DO NOT WANT TO CHOOSE ANOTHER SUPPLIER?

Natural gas supply will be available to those who do not choose another supplier. The provider of what is called fallback supply or standard offer service may or may not be your current gas utility. The quality of natural gas you receive from any gas supplier will be the same as the quality of gas you receive now from your gas utility.

WILL I NEED ANOTHER GAS METER TO RECEIVE NATURAL GAS FROM ANOTHER SUPPLIER?

No. Your gas utility will continue to distribute the gas to your home and use your existing meter.

WILL I RECEIVE MORE THAN ONE BILL?

You may receive separate bills from your gas supplier and gas utility, or you may be able to receive a single bill covering all services.

WILL THERE CONTINUE TO BE PROGRAMS TO HELP CONSUMERS WHO HAVE PROBLEMS PAYING THEIR BILLS?

Yes. Colorado’s gas choice law provides for a public benefits charge on gas bills to help pay for low-income energy assistance. The Colorado Low-Income Energy Assistance Program (LEAP) and the Colorado Energy Assistance Foundation (CEAF) will still be available to help with bill assistance, weatherization and other programs. If you have questions, you can call the state LEAP office at 1-800-782-0721. You can call CEAF at 303-825-8750. Budget billing, payment arrangements and other assistance will still be provided to those who need it.

WILL THE OCC BE PROVIDING MORE INFORMATION WHEN GAS CHOICE IS AVAILABLE TO CONSUMERS?

Yes, the OCC will be providing rate comparisons and other information to help consumers choose the best deal for them. Also, the new law requires a consumer education program about the choices available.