What is Gas Choice? Natural Gas Customer Choice (GCC), commonly known as Gas Choice, is a unregulated utility program that allows end-users to shop for natural gas supply instead of buying from their local regulated utility. Gas Choice customers may contract with an Alternative Gas Supplier (AGS), licensed by the Michigan Public Service Commission (MPSC), to buy natural gas at a competitive rate, while still receiving distribution services from the utility.
Below you’ll find answers to Frequently Asked Questions about GCC. If you have additional questions or need more information, please Contact Us.
How is Gas Choice different than buying gas from my utility?
Gas Choice customers remain on the utility system for distribution, and the utility continues billing monthly for distribution charges. The utility continues to read your meter and respond to service calls. The most noticeable difference is that the utility bill contains the AGS’s contracted rate for supply, rather than the utility’s monthly supply rate, known as the Gas Cost Recovery Factor (GCR).
What is an Alternative Gas Supplier (AGS)?
An Alternative Gas Supplier is a supplier of natural gas who is licensed to serve Gas Choice customers in certain utility areas. In Michigan, suppliers must apply for AGS licensing with the Michigan Public Service Commission (MPSC) and adhere to MPSC regulations to maintain the license. Although AGSs work with the utilities and within utility regulations to serve customers, AGSs are not owned by or part of the utility.
What are the advantages of Gas Choice?
Gas Choice provides options for buying natural gas supply at competitive rates and term lengths that may not be available from your local gas utility. With Gas Choice, you may choose among strategies for managing your natural gas and meeting your business objectives. You may choose a fixed rate for budget certainty, or a market-based variable rate for flexibility, and adjust over time.
Will I save money on Gas Choice?
You may be able to save money on Gas Choice. Savings can be subjective depending on what prices you’re comparing, during what period of time, and it is not guaranteed. Your Gas Choice rate might be lower in some months than rates you’ve paid in the past or might otherwise pay to other suppliers or your utility now or in the future. Market pricing can fluctuate unpredictably, and in the long term, you may end up saving money in some months and paying more in others.
Where is Gas Choice available?
Gas Choice is available in certain states and utility service areas where natural gas markets are deregulated. This includes the major natural gas utility service areas in Michigan and areas within many other states in the Midwest and nationwide. In Michigan, Gas Choice is available to customers of Consumers Energy, DTE, MGU, and SEMCO.
Who Can Participate in Gas Choice?
Commercial and residential end-users of all sizes may participate in Gas Choice if the program is available in their gas utility’s service area, and they meet the applicable utility requirements. For example, if you are in arrears with your utility, you are not eligible to participate in the GCC program until arrearages have been paid in full to the utility.
Do I Have to Participate in Gas Choice?
No. You can select an AGS or do nothing and services from your local gas utility will continue at the monthly “Gas Cost Recovery” (GCR) rate. For customers with very high usage volumes, buying supply from an alternative supplier in the Transportation Gas program may be an option worth consideration.
If I enroll in Gas Choice, will I still get reliable utility service?
Yes. On Gas Choice, your utility will continue to distribute natural gas to you with the same level of reliability as they would if you were buying supply at their GCR. Additionally, utilities require suppliers to adhere to strict regulations and customer protections. All gas supplied by an AGS must meet the utilities’ quality standards.
Does Gas Choice require changes to the meters or gas lines serving my building?
No. You will continue to receive distribution of the gas by your utility through the existing gas lines, and your utility will continue to read your meter.
If I think I smell gas, do I still call my utility?
Yes. If you have any safety concerns, call your utility immediately and follow their recommended safety precautions.
How do I enroll in Gas Choice?
Once you enter into a contract with an Alternative Gas Supplier, the AGS typically handles the enrollment process with your utility. Utility enrollment deadlines for each service month are typically set around the middle of the prior month. Only the account holder or an individual that is legally authorized on the account can enroll it.
What will my current natural gas utility do when I switch?
Your utility will process your enrollment in the Gas Choice program, without any service interruptions or modification of the utility infrastructure serving your meter. Your contracted price with the AGS you have chosen will be reflected in the utility’s next available billing cycle. After enrollment, you may receive at least one more utility bill at your previous supply rate, for the billing cycle(s) between your previous utility bill and the date the utility processes the enrollment.
On Gas Choice, would the same utility billing options still be available?
Yes, very little would change with your utility’s billing practices aside from the supply rate. You could still take advantage of options like budget plans that may be available from your utility. If you are in arrears with your utility, however, the utility may restrict you from participating in Gas Choice.
When and how can I cancel?
AGS customers have a 30-day unconditional right to cancel a contract without termination fees following the date the customer signs the contract. After that, you may cancel your Gas Choice service at any time by notifying your supplier through written or verbal communication. However, you may be subject to fees or charges depending on the circumstances of your cancellation. Your supplier contract may include cancellation fees that may apply if you cancel service before the end of your contract term. You may also be subject to utility charges if you switch between Alternative Gas Suppliers more than once in a 12-month span. Additionally, if you cancel Gas Choice service to return to utility tariff service, your utility will typically require you to remain on that service for at least 12 months before you would be eligible to enroll in Gas Choice again.
Do my utility’s reps contact customers by phone or door-to-door to ask for our utility bills or account numbers, or to sign paperwork?
No. Your utility has that information already and would have no reason to request it from you. If a caller or door-to-door salesperson claims to be working with the utility and asks for your bills or account information, you should exercise extreme caution. You have no obligation to provide the information or sign any documents. The salesperson might be engaging in marketing tactics that are deceptive and in violation of MPSC regulations. If you are concerned about the validity of somebody contacting you about gas service, you may contact your utility or the MPSC for more information.
Is Dillon Energy a licensed Alternative Gas Supplier (AGS) in Michigan?
Yes, Dillon Energy Services obtained AGS licensing from the MPSC in 2012 to serve customers in the Consumers Energy and DTE Gas Company Service areas. For more than 20 years, Dillon Energy has been providing natural gas supply and management services to very high-volume businesses on the Transportation Gas program. Dillon Energy supplies Transportation Gas customers throughout Michigan’s four largest natural gas utility service areas: Consumers Energy, DTE, MGU, and SEMCO.
Is Dillon Energy Services affiliated with a utility?
No. Dillon Energy Services, Inc. is an independently-owned business headquartered in St. Clair Shores, Michigan.
What Gas Choice options does Dillon Energy offer?
Dillon Energy offers Fixed Rate and Variable Rate Gas Choice contracts. Fixed Rate contracts lock a specific price per unit of natural gas used by the customer during the contract term. While end-users often choose contract terms of 12, 24, 36, or 48 months, Dillon Energy also offers contract terms for a different number of months when preferred by a customer. Variable Rate contracts are month-to-month at market-based rates that fluctuate monthly.
Why do customers choose a Fixed Rate Plan?
A Fixed Rate offers budget certainty by locking a price for gas supply for a term chosen by the customer. This can satisfy a customer’s internal requirements for managing expenses, while insulating the customer from risk factors like market volatility and pricing increases.
Why do customers choose a Variable Rate Plan?
A Variable Rate offers flexibility through a month-to-month contract with no cancellation fee. This allows customers to keep their options open, especially at times when market pricing better fits their purchasing goals than the available Fixed Rates, or usage patterns are evolving. They can take advantage of dips in the market, and they can switch to a Fixed Rate later if pricing meets their objectives.
Can I switch between plans?
For any meter enrolled in Gas Choice, you may switch from a Variable Rate to a Fixed Rate plan with Dillon Energy without a cancellation fee. You may also switch from a Fixed Rate to a Variable Rate plan at any time, however if you switch before the end of the Fixed Rate contract term, you may be subject to cancellation fees from your supplier. Some customers choose one strategy or the other for the long term, while others may switch between plans from time to time. We can assist you to choose the strategy that is best for your specific energy and business needs.
Do the Gas Choice contract terms refer to calendar months?
Not exactly. The months of a contract term refer to the customer’s service and billing months with their gas utility, based on factors like the utility’s schedule for reading meters. While meter reads typically occur about a month apart, those dates might fall at any point during the month and are not necessarily 30 days apart. It is not uncommon for a customer to have some billing cycles that are a few days longer or shorter than others.
What happens when my Fixed Rate contract expires?
Dillon Energy will notify you in advance of your Fixed Rate contract expiration, in compliance with MPSC and utility regulations. We will provide you with Fixed Rate options for renewal or extension, based on forward market pricing at that time. You are not required to renew on a Fixed Rate to continue your Gas Choice service. If you choose not to renew on a Fixed Rate starting the month after expiration, your Gas Choice service from Dillon Energy will continue on a month-to-month, market-based Variable Rate until you enter into another Fixed Rate term with Dillon Energy or cancel our service. If you are on a Variable Rate contract with Dillon Energy, your service automatically renews each month unless you cancel or switch to a Fixed Rate.
When my Fixed Rate contract expires, can I renew Gas Choice service at the same Fixed Rate?
Possibly. The Fixed Rates available at the time may be higher or lower than your expiring Fixed Rate, depending on factors like market pricing and term length.
Why are some Gas Choice rates listed in different units, and what’s the difference?
Gas Choice supply prices are billed per unit of usage by your utility. Utilities use different units of measure for metering and billing purposes, and conversion factors may vary. For some purposes, utilities may measure the gas volume only, in cubic feet, typically Ccf (100 cubic feet) or Mcf (1000 cubic feet). For other purposes, utilities may incorporate the heat content of the gas as well as the volume. The conversion factor, known as the Btu factor, is based on the actual heat content of the gas on the utility system in a given timeframe, and may change slightly from month to month. The Btu factor may vary in a range of approximately 1.02 to 1.07. For example, here are some common conversions, assuming a Btu factor of 1.05.
1 Mcf = 10 Ccf
1 Dekatherm = 10 therms
1 Mcf = 1.05 MMBtu = 1.05 Dekatherms
1 Ccf = 0.105 MMBtu = 1.05 Therms
$ per Mcf = $ per MMBtu x 1.05 = $ per Dekatherm x 1.05
$ per Ccf = $ per MMBtu x 0.105 = $ per Therm x 1.05
Who do I contact regarding billing issues?
For questions related to your Gas Choice supply rate with Dillon Energy, you may contact our team at 586-541-0055 (phone), gaschoice@dillonenergy.com (email), or 586-541-0048 (fax), or at the direct extension or email address of a Dillon Energy representative you have worked with. For questions related to the billing of utility distribution rates or other utility matters, please contact your utility. If you are unsure whether your question pertains to service from Dillon Energy or your utility, please feel free to contact us, as we will be happy to provide assistance where we can, or direct you to your utility.
