Choose your supplier

Under the Delivery Service (DS) program, customers have the option of purchasing their gas from a supplier. Columbia Gas of Kentucky, Inc. (Columbia Gas) will continue to deliver the natural gas to your facility, but the purchase function will be handled by the company of your choice. This method of natural gas purchasing is similar to the telecommunications industry where you choose a long distance provider. Delivery Service is available to customers who consume more than 25,000 MCF of gas per year.

There might be an opportunity to save money on your gas cost. Suppliers are not subject to state utility commission pricing regulations and can price their gas differently than Columbia Gas. Under federal and state regulations, gas costs are passed through to all sales customers on an average basis, dollar-for-dollar. Columbia Gas is not permitted to "mark-up" gas costs. Columbia Gas derives its income from the delivery of gas through its distribution system to both sales and delivery service customers. You are our customer whether you purchase traditional sales service from Columbia Gas, or choose to purchase it from a third-party supplier.

First, there's the cost of the natural gas itself. We refer to this as the "commodity cost." Next comes the "delivery service cost". This is the cost of delivering the natural gas from the supplier or producer to the Columbia Gas distribution system. It includes fixed or demand charges to reserve the pipeline capacity needed to transport and store your gas for when you need it. And lastly, we have the "distribution cost." This is the cost of delivering gas to your facility. It includes not only the actual delivery costs, but also such items as pipeline maintenance, system upgrading, meter reading, and billing.

When you enter the DS program, you are essentially purchasing the gas or commodity from a supplier of your choice, rather than Columbia Gas. Delivery Service costs remain the same, as do the costs associated with the distribution service.

Choose a supplier. You may contact Columbia Gas for a list of qualified suppliers and they are listed on our website. Your chosen supplier will forward the necessary paperwork to you for your approval. This will include a Gas Delivery Service Agreement between you and Columbia Gas, detailing your service options, volume requirements, service address, account contact information, and the name of your supplier. You may also be required to execute an agreement with your supplier. Your supplier is responsible for returning the Gas Delivery Service Agreement to Columbia Gas for further processing.

Costs vary from supplier to supplier. This is something you would need to discuss with potential suppliers.

Columbia Gas is a regulated utility required to price gas on an average basis to all customers. We also must include certain fixed charges relative to reliability of delivery. By purchasing gas from another supplier, you can tailor the level of service reliability and your supplier can target particular gas supplies to satisfy your needs.

Yes. You will receive one bill from Columbia Gas and one from your supplier. Your Columbia DS bill will reflect your delivery service charges or the cost of delivering the gas to your facility. This could also include a commodity charge from Columbia Gas, which occurs when your supplier falls short in delivering enough gas to your facility. The bill from your supplier will reflect the cost of the gas commodity delivered to Columbia Gas on your behalf.

The possibility does exist. However, there are safeguards and if you feel you would like to take advantage of them, you may contract with Columbia Gas to purchase Backup Service or you may install an alternate fuel source. We suggest you talk to your local Columbia Gas Representative as well as any potential suppliers about these options.

Columbia Gas may provide you gas under our normal system supply rate schedules provided that:

• Your return to system supply does not negatively impact the rate non-delivery service customers pay.
• You are willing to absorb any increased costs caused by your return to sales service.
• You give proper notice per the Delivery Service Agreement and tariff.

Be sure you fully understand any arrangement that you agree to and understand the terms of the agreement you sign.

Once you have chosen a supplier, that supplier will provide you with the necessary paperwork to participate and enroll in DS. Columbia Gas will process the contract once we receive the agreement and all of the necessary information from you and/or your supplier.