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Press Releases | |
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EIA ReportsU.S. DEPARTMENT OF ENERGY New EIA Web Site Shows that Customer Choice Programs for Natural Gas Consumers Are Becoming More Widely Available but the Programs and Participation Levels Vary ConsiderablyState 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 EIA Web site, available beginning today, provides 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 9 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. To find out more about the status of residential customer choice programs in each of the 50 States and the District of Columbia visit 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
EIA Program Contact: Barbara Mariner-Volpe (202) 586-5878 EIA-99-19 Contact:
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