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Comparing Deregulated Natural Gas Rates

If you live in a state with deregulated natural gas utilities, then you already know that there is a great opportunity to save money on your natural gas bill. Natural gas in the United States is quickly becoming a globally-recognized commodity due to its export nature. And, since U.S. gas is in such high demand, the price for gas fluctuates frequently. 

Understanding how natural gas deregulation works is key for you to compare natural gas rates for your home or business to save the most amount of money. On this page, we outline natural gas deregulation, how natural gas rates work, and the best ways to find and secure the lowest natural gas rates.

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Advantages Of Deregulated Natural Gas:

Whether you live in a deregulated state or you own a business there, you can take advantage of energy deregulation by signing up with a natural gas supplier. Many times, natural gas rates from suppliers can be lower than your local utility’s default electric rates. Here are some of the advantages of gas deregulation:

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Supplier Competition Promotes Lower Electricity Rates

First, because deregulated energy states are free markets, there is natural supplier competition. Unlike regulated states where customers have to buy from the utility company, deregulated states typically have lower gas prices.

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Lock-In Long Term Fixed Natural Gas Rates

Next, if you are located in a state with deregulated natural gas utilities, you have the option to lock-in long term gas plans for your home or business. Those in regulated states simply pay the going rate set by the utility company.

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Fuel Source Choice

When you can find cheaper alternative fuel sources, such as natural gas, many businesses elect to transform there operations away from other fuel types, like oil or coal.

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Economic Growth And Career Opportunities

Last, energy deregulation is great for the economy. It promotes economic growth with new business and even creates many new job opportunities in the community. 

How You Can Shop For A Deregulated Natural Gas Rate:

If you are looking to shop for natural gas rates in a deregulated state, then you can follow the instructions below. Shopping for gas has never been easier! Before sites like this one, customers had to rely on offers in the mail or other salesman to find natural gas rates in their states. Now, you can browse the top electric offers by entering your zip code or by searching in your state or utility. Shopping for a gas plan is as simple as:

  1. Enter Your Zip Code: Start by entering you zip code in the search bar at the top of this page. 
  2. Select Your Options: Next, filter the search results by the options you would like to see (more on gas rate options below).
  3. Choose Your Plan: Then, choose the natural gas plan that is right for your home or business.
  4. Enter Your Information & Enroll: Finally, you will be prompted to complete your utility account and customer information and then you will be enrolled in your new natural gas rate plan. 

What You Need To Know About Natural Gas Deregulation

If you want to know more about how energy deregulation works, you’ve come to the right place! Starting in the late 1990s, companies like ENRON started wholesale natural gas markets where suppliers could trade and sell gas. In 1992, the FERC passed Order 636, otherwise known as “The Final Restructuring Rule”, calling for the complete separation of natural gas supply and delivery. Later in the 90s, states started to break up their natural gas utility monopolies in favor of deregulated natural gas markets. By the 2000s, many other states followed and passed legislation allowing for natural gas deregulation. Today, there are many other deregulated gas states, such as Pennsylvania, New Jersey, New York, Ohio, Illinois, MarylandD.C., Connecticut, Massachusetts, Colorado, California, and more.

In a deregulated state, natural gas suppliers sell natural gas to utility company customers over the utility company’s gas lines. In fact, if you live in a deregulated state and have signed up for a third-party gas rate, many times the supplier’s charges will appear right on your utility bill. The natural gas deregulated energy supply chain looks something like this:

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Gas Drilling and Fracking

First, natural gas exploration companies drill and frack for natural gas by drilling into the earth and extracting natural gas that has built up in underground rock formations. Natural gas comes from many years of decomposing carbon.

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Natural Gas Transport Pipelines (Midstream)

Next, the natural gas is then transported to gas utility companies or to natural gas storage facilities via midstream pipelines. Often, natural gas is stored in underground facilities for colder times when gas is more in demand.

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Natural Gas Utilities

Once the natural gas arrives at the gas utility companies, the utilities then distribute and deliver natural gas to their local customers over their gas lines. These gas lines are buried beneath city streets and run to your homes or businesses.

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Natural Gas Suppliers

Natural gas suppliers in deregulated states purchase natural gas on the wholesale market and resell it to end users over the same transport and local utility gas lines to end users.

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Residential Customers

Residential customers are connected to the local gas lines and get billed by the utility company. In many states, customers can still stay with the utility for supply or they can buy from a third party gas supplier. 

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Commercial Customers

Commercial customers, like residential customers, are also connected to and billed by the local gas utility. Commercial customers often elect to purchase natural gas from a supplier so they can forecast costs and budgets.

Get A Free Quote For Natural Gas

If you are looking for a natural gas rate for your home or business, please complete the form below so we can offer you a custom quote. Due to recent natural gas market volatility, we are not offering standard natural gas rates on our website. All of our natural gas pricing is custom. The good new for you is that custom quotes are typically much lower than standard rates, so you can benefit from a lower price.

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Natural Gas Markets

The wholesale natural gas markets in the United States trade just like the stock market. In fact, if you ever watch financial news on CNBC, you will see a price for natural gas (NYMEX). The NYMEX, or otherwise known as the New York Mercantile Exchange, is the financial market where natural gas prices trade. Natural gas also has a physical component, unlike stocks. Because natural gas is an actual commodity that comes from the ground and is transported around the country through pipelines, when you buy it you either have to sell it to someone else or use it. Here is some more information on how the natural gas markets work:

The Henry Hub In Louisiana

If you take a look at the image below of all interstate natural gas pipelines in the United States, you might notice that many of the pipelines converge in Louisiana. In fact, this place in Louisiana where all natural gas pipeline come together is known as The Henry Hub and has the most natural gas trading activity in the country. And, the price of delivery of natural gas at The Henry Hub sets the price of natural gas throughout the entire country!

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As we mentioned before, natural gas is a physical product and is often purchased for consumption. Since most delivery of natural gas takes place at The Henry Hub due to the location of gas pipelines, this is where the national NYMEX financial price for gas is set. Whatever it costs to deliver gas to this specific location is the price of the NYMEX for that certain time. 

Local Costs And Prices

But what about natural gas suppliers delivering gas to a customer in New York? How can that be the same price as the cost to deliver gas in Louisiana? Well, it’s not. The price of gas in Louisiana is simply the base price for natural gas. When a supplier is transporting natural gas to a different part of the country, there are also local costs associated with getting the gas there. These local costs can fluctuate too from location to location based on demand. For example, local costs on a cold Winter day in New York City will be much higher than those on a mild day in North Carolina due to heating demand for natural gas. 

This is oftentimes why your natural gas supply rate might seem higher than what is advertised as the NYMEX price on CNBC. We are often asked about this, and the simple answer is to take the NYMEX price and add whatever local costs you might incur for taking delivery of natural gas at your location in the country.

Natural Gas Supply Contracts 101

There are certain things to know about natural gas supply contracts when signing up with a gas supplier. You should carefully read the details of your new natural gas plan before signing up, and watch out for these specific items:

    • Gas Contract Term: First, if you are signing up for a fixed-rate natural gas plan, then your contract will have a term length with a start date and end date. Make sure before you sign up that you are not currently under contract with another supplier or you might get charged a cancelation fee. It is important to know the term before you enroll.

    • Total Price Per CCF, MCF, DTH, or Therm: Next, make sure you understand your total price for natural gas. There are many different types of natural gas units, so do not get confused. Whatever units your supplier is advertising, makes sure you know what’s in the total price. Here are some of the typical natural gas units:
      • CCF, or the volume of cubic feet
      • MCF, which is that same unit in multiples of ten
      • Therms and Deka Therms
      • You might even see gas units in BTu, or British Thermal Units 
    • Early Cancelation Fees: If you are signing up for a contract, know what happens if you cancel early. Some residential plans do not contain termination fees, but most natural suppliers will charge you for breaking the contract too early. Make sure you know your options before signing up. 
    • Auto-Renewals: Watch out for auto-renewals in contracts. While we do our best to heavily vet the natural suppliers on our platform, some suppliers will try to sneak in auto-renewal language into the contract that binds you to a new term if you do not cancel in time. If you are stuck in an auto-renewal contract, contact us so we can help you. 
At EnergyPricing.com, we vet all of the natural gas suppliers on our platform before we give them permission to display their rates. We are aware of all the common tricks of the trade and do our best to eliminate energy suppliers that don’t play by the rules.

Natural Gas Rates By State

Today, there are fourteen states and territories with fully deregulated electric utilities. Other states like California and Michigan participate in partial deregulation where only certain types of customers are allowed to shop. We are licensed to do business and offer electricity rates in all fourteen states offering full deregulation. Browse electricity rates by state below:

Things To Know Before You Sign Up

Signing up with an energy supplier is easy, but there are some things you should keep in mind first before enrolling in that next natural gas contract. At EnergyPricing.com, we offer more than just the lowest gas rates in the country. We strive to give our customers sound advice based on our decades of combined experience in the market. Here are three tips for enrolling in your next natural gas plan:

1. Check Out The Supplier

There are many gas suppliers in the market offering all sorts of power plans. First, it’s important to know who it is that you are signing up with, and all about their track record. We have seen countless scenarios of suppliers offering very low rates to attract many new customers, yet they change their tune and do not honor the terms of their contract. We recommend only signing up with the most reputable natural gas suppliers. When you shop electric rates on our site, you can rest assured knowing that we have done this research for you ahead of time and only allow the most reputable suppliers on our site.natural gas

2. Make Sure You Can Switch

Next, it’s important to know the status of your natural gas account or accounts. If you signed up with a supplier in the past, make sure that you are no longer under contract so that you do not get charged a penalty for switching. If your contract is ending soon, make sure to time the start date of your new contract with the end date of your existing contract. If you are with the utility company on default natural gas supply, then you should be able to sign up for a gas plan at any time. 

3. Remember Your Contract End Date

Our final tip is to mark down the end date of your new natural gas contract. If you sign up on our site, we will remind you before your contract expires so that you can shop for a new rate. Many times, however, natural gas suppliers will bill you a higher rate than your fixed rate when your contract expires and you remain with them. It is important to know when your contract ends so that you can renew with your supplier, choose a new supplier, or go back to the utility for default natural gas service. 

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Frequently Asked Questions

Thinking about signing up for an natural plan, but you have a question? We’re here to help and answer any questions that you might have! Check out some of the more frequent questions we hear from our customers below. Don’t see your question? Contact one of our experts for some help or guidance!

General Questions About Natural Gas

There are two types of billing options when it comes to your energy agreements: consolidated (one bill from the utility) and dual billing (one from the supplier for the supply costs and one bill from the utility for distribution costs). Most standard agreements will be consolidated billing.
Unfortunately, no. When you enter into an agreement for your energy procurement, you will be responsible for the terms and conditions of the agreement. The utility’s rate does change throughout the year. Once your agreement has ended you will be able to analyze the market and make the best decision at that time.
To know which rate you are currently paying, you want to look at the Gas Supply portion of your utility bill. Similar to electricity, you will see a delivery charge which is the cost to distribute your gas supply and also the gas supply. To analyze your current price, you will want to add together any line items within your supply charges and divide by the monthly usage on the bill. Also, similarly to electric, there are different products within the natural gas realm; burner tip and city-gate may be one’s you have heard of. Our Energy Advisors will help you select the best options when it comes to your natural gas.
There are multiple suppliers online but how can you tell which is right for your business needs? Suppliers provide the electricity or natural gas you consume at your location. When you switch to a third party supplier, you are purchasing energy directly from them.
Utilities are the companies that distribute your energy from the power supply to your business. ‘Distribution’ costs are determined by the utility and cannot be shopped. Essentially, you are paying the utility to provide a service by delivering your energy to you. Where your service area is located will determine your utility company.
Deregulation allows you to shop for your generation and transmission costs with your utility in a deregulated area. You can take advantage of the energy market and control your energy expenses.
If you are located in a utility that offers a default rate, the Price to Compare is located on your recent bill copy for either electric or natural gas. It’s the benchmark you will want to use when comparing third party supplier rates. Those utilities will always have a Price to Compare that changes throughout the year. Some change monthly, others change quarterly. It will vary and be based on the current market conditions at the time they purchase their energy.
Not always is the cheapest price going to be the best option for you. There are a variety of factors that need to be weighed before you make a decision. Some of those include the components that make up the cost, cancellation terms and also your individual business factors (i.e. how long will you be at your current location, will your consumption stay constant or go up and down, etc.). Luckily, we are well-versed in the procurement industry and have years of experience to help guide you through this process.
It depends on the supplier. Generally, if you turn off the meter and there is a cancellation fee associated with your contract, you will be responsible for that cancellation fee.

Questions About EnergyPricing.com

There is no additional cost to use our services. We are paid by our providers when your plan starts. With most plans, we receive monthly payments from providers who are enrolled.  We strive to offer competitive plans for your household or business.

EnergyPricing.com was created by Achieve Energy Solutions, LLC (“AES”) as a tool for your business to easily have access to the best energy plans in their utilities. By utilizing a technology platform, EnergyPricing.com can offer daily pricing based on market conditions as well as energy auctions where pricing is customized specifically to your business’ usage consumption. All at your fingertips.
There are no smoke and mirrors when it comes to discussing how we get paid. From day one we are fully transparent with customers on how much we are paid from the suppliers. In addition to being fully transparent with our broker fee, we run all our customers’ custom energy quotes through a reverse energy auction . We contract large quantities of energy on a regular basis this means we in turn receive discounted rates and pass along those savings to our clients.

Shopping for rates and comparing terms & conditions can at times feel like a daunting task. There are different energy requirements, cancellation fees and different types of suppliers contracts making it even more confusing when comparing rates. With EnergyPricing.com, you can easily compare apples to apples with our energy auctions and know that with our daily pricing you are looking at the all-inclusive fixed-rate option. No surprises.

We work with the nation’s top retail suppliers. We have vetted and been vetted to mutually work with the best. You can feel confident in your energy choices with EnergyPricing.com as your broker.

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