We want to help you make an informed choice. If you are considering
changing your natural gas supplier, we've created a list of terms you
should know.
Account Agent
A third party who is authorized to purchase, manage and/or bill
for natural gas service. For example, when you sign a contract with
a supplier, they become your account agent and are authorized to buy
natural gas on your behalf and may also be authorized to receive
bills from the utility and other information that would otherwise be
sent directly to you.
Aggregation Balancing Gas Charge (ABGC):
The ABGC is a charge for gas related storage expenses. Although the ABGC is billed as a separate line item for Choices for You customers, it is not an additional cost. Customers buying their gas from Peoples Gas pay this cost as part of their overall Gas Charge cost. The ABGC is billed to customers based on usage. The rate may change each month and it is filed with the Illinois Commerce Commission.
Billing Cycle
The amount of time covered by one bill, usually one month.
Budget Plan
A payment option that spreads a customer's estimated utility costs
evenly over the year.
Combination Packages
Suppliers may offer packages that include both gas and electric
offers.
Commodity
The natural gas you use, not including any services provided by
the supplier or utility.
Choices for YouSM
A program offered by Peoples Gas
that allows residential and small business customers to choose their
natural gas supplier.
Customer Charge
A fixed monthly charge that recovers the costs associated with
making service available to customers. This charge also funds Illinois
state weatherization, energy assistance and renewable energy grants.
Deregulation
Allowing other suppliers the opportunity to sell natural gas to
customers, the service of purchasing gas has been separated from the
distribution function of the utility.
Distribution Charge
A per-therm charge assessed by
Peoples Gas based primarily
on the volume of gas delivered to the customer.
Fixed Bill
The customer pays the same amount every month for a set period of
time. Changes in the customer's use or the market price of natural gas
should not affect the amount the customer pays.
Gas Charge
A charge that recovers the cost of
Peoples Gas' gas supply. The
gas charge is determined monthly and filed with the Illinois Commerce
Commission (ICC).
Letter of Agency
A written agreement that a residential customer switching gas
suppliers must sign, unless the customer is enrolling by Internet or
telephone, to authorize the new supplier to purchase gas on the
customer's behalf.
Market
Based or index price: Under these plans, you can expect the price
for natural gas to change each month. The supplier sets the monthly
price per therm based on natural gas market indicators, meaning your gas
price will fall and rise with market prices.
NYMEX
An acronym for the New York Mercantile Exchange where contracts for
commodities, including natural gas, are traded. At the NYMEX, natural
gas futures and options contracts are traded and future pricing
directions are established. Suppliers may establish their prices using
the NYMEX.
Open Enrollment
Customers can enroll in the program and are eligible to choose their
own natural gas supplier. There is no deadline for signing up, and
customers may switch between suppliers at any time — subject to any
supplier contract provisions. There are annual enrollment limitations
for residential customers.
Retail Customer
A customer who buys gas supply service from the utility and who does
not receive supply service from a gas supplier.
Single Billing
A service provided by either
Peoples Gas or a supplier that
offers one bill containing charges from both
Peoples Gas and the supplier.
Storage
A type of service offered by pipelines and other owners of storage
facilities whereby the gas may be placed in the facility, usually during
the summer, and kept until a later date when the owner of the gas may
withdraw the stored gas, usually in winter.
Supplier/Marketer
A company other than the local utility that supplies natural gas to
customers.
Therm
The basic unit for measuring natural gas use.
Utility Affiliate
A supplier/marketer that is owned all or in part by the same
corporation that owns the local utility.
Variable Price
The price for natural gas may go up or down with market trends. But
the price per therm may not necessarily be tied to a market index. For
example, it may be based on the supplier's average cost to purchase
natural gas.
Weighted Average Cost of Gas
The average cost of gas based on your gas use. If you use more gas in
a given billing period, that month's gas price carries more weight in the
calculation. If you use less gas in a billing period, that month's gas
price carries less weight. Since gas costs change throughout the year,
this is an accurate way to figure out a customer's average yearly price
per therm.
