If you haven’t signed on with a retail gas supplier, your utility procures the physical gas you use. Utilities are not allowed to make a profit off the sale of the physical gas. Accordingly, the Gas Supply price charged by your utility reflects the market price the utility paid. The price changes each month, based on the utility’s estimate of how much it will have to pay to procure the gas needed to satisfy customer demand. Each year, the Commission reviews the utility’s procurement practices to ensure they are reasonable and competitive. The Commission also compares the utility’s forecasted procurement costs and their actual procurement costs. If the utility spent more than it anticipated it would, a surcharge is added to the gas supply cost for the next twelve months. If the utility spent less than it anticipated, a customer credit is added for the next twelve months.
If you’ve signed on with a retail gas supplier, that supplier procures the gas you consume. Unlike utilities, retail suppliers make a profit off the gas they sell. Their procurement practices are also not subject to annual review by the Public Service Commission. Retail suppliers have far more leeway in how much they charge.