Customer Choice
The following answers to frequently asked questions about the Customer
Choice Program are provided as a service to customers considering
a natural gas provider other than SEMCO ENERGY GAS COMPANY.
Also click on to the MPSC website (http://www.cis.state.mi.us/mpsc/gas/choice.htm)
for more information on the Customer Choice program.
What is the Customer Choice Program?
How much will I pay for a third
party supplier?
What are these charges for?
Why is the Distribution
Charge a separate charge?
How much is the Distribution
Charge?
How soon do I have to choose
a natural gas supplier?
How do I compare prices?
May I Change Suppliers?
When may I enroll?
Can I return to SEMCO ENERGY
if I select another supplier?
How Often May I Change Suppliers?
How do I remain with SEMCO
ENERGY GAS COMPANY?
Who are the suppliers?
How do I protect my personal
information?
Can Customer Choice participants
remain on the budget plan?
Why isn't my budget payment
based on my supplier's energy charge?
Where Can I find additional
information?
What is the Customer Choice Program? <Top>
It is a phase of deregulation of the natural gas industry that
allows you to select your natural gas provider in much the same
way you select your long-distance telephone service. Under this
program, instead of SEMCO ENERGY being the sole
provider of natural gas, customers are given the option of shopping
around for natural gas suppliers. SEMCO ENERGY GAS COMPANY
will continue delivering natural gas to your home or business as
it always has, regardless of whether or not you select an alternate
natural gas supplier. We also will continue reading your meter,
handling billing, and responding to emergency calls. The primary
difference for you would be a more highly itemized bill detailing
all charges, including the price that you pay for natural gas from
the third-party supplier.
How much will I pay for a third party supplier? <Top>
If you choose a third party supplier, the amount you pay for gas
will be negotiated between you and that supplier. SEMCO
ENERGY GAS COMPANY will continue to charge its normal service
charges, excluding the Energy Charge, which is the actual cost of
the natural gas.
SEMCO ENERGY's Energy Charge continues to be regulated
by the Michigan Public Service Commission. The third party supplier's
Energy Charge is not regulated by the MPSC.
The total GCR charge is composed of the following
charges:
- A Daily Balancing Charge.
- A Capacity Demand Charge.
- Energy Charge.
What are these charges for? <Top>
Balancing Recovery Charge - This is what it costs to
operate the system on a daily basis. This charge provides for the "cushion"
of gas that the Gas Company uses to balance customer consumption with
actual gas deliveries to the system. This cushion is necessary because
it is impossible to predict the exact amount of gas a customer will use
on a daily basis.
Capacity Demand Charge - As the Supplier of Last
Resort, SEMCO ENERGY is required to have sufficient
pipeline capacity to serve all customers in its territory, including
Choice program participants. This charge allows these costs to be
recouped from Customer Choice participants as well as SEMCO
ENERGY sales customers.
Energy Charge - This is the cost of the natural
gas commodity itself.
Why is the Distribution Charge a separate charge? <Top>
If you choose to buy natural gas from an alternate supplier, the
price quoted probably will not include the Distribution Charge,
since that charge is applied and collected by SEMCO ENERGY.
Since SEMCO ENERGY distributes your natural gas,
regardless of which supplier you select, the distribution charge
is applied to your bill by SEMCO ENERGY. Therefore,
for the purposes of comparing suppliers’ energy charge, it
is more accurate not to include the Distribution Charge.
How much is the Distribution Charge? <Top>
The January 2010 Residential Distribution Charge
for SEMCO ENERGY GAS COMPANY is $ 0.15817 per Ccf.
The January 2009 Residential Distribution Charge
for the Battle Creek Division is $ 0.16389 per
therm.
How soon do I have to choose a natural gas supplier? <Top>
It is important to understand that you are under no obligation
to select a natural gas supplier other than SEMCO ENERGY
GAS COMPANY. There is no set sign up period for the selection
of an alternative natural gas supplier. You do not have to take
any action to have SEMCO ENERGY GAS COMPANY continue
supplying your gas as well as transporting it to your home or business.
Not all natural gas marketers will supply customers in all SEMCO
ENERGY service areas. Individual gas marketing companies
solicit customers in much the same way that competing long-distance
telephone service carriers currently advertise and solicit new customers.
How do I compare prices? <Top>
Use the following forms to compare your current bill with an Alternative
Supplier.
Click Here for a PDF version
of the worksheet for January
2010.
Click Here for a PDF version
of the worksheet for February
2010.
There are additional factors that should be taken into consideration
when reviewing third-party offers. The following are some of the third-party
factors that you should take into consideration, in addition to Energy
Charge:
Minimum Monthly Consumption - Some suppliers may
require you to pay for a minimum amount of gas each month, regardless
of your actual consumption. The average SEMCO ENERGY residential
customer uses about 1,000 hundred cubic feet (Ccf) per year. You
can use this figure to help determine your projected monthly costs.
Minimum Contract Terms - Some suppliers may require
you to agree to a minimum contract length in order to qualify for
the program.
Exit Fees - Some suppliers may charge an Exit
Fee if you switch from their natural gas supply program.
Penalties - If your natural gas supplier does
not deliver the required amount of gas to SEMCO ENERGY, penalties
may be assessed. Ask who would be responsible for payment of these
penalties.
Automatic Renewal - Review contract language carefully.
Some contracts may contain language automatically renewing a contract
unless you take specific action within a given period to cancel
the contract.
May I Change Suppliers? <Top>
A Customer Choice customer may switch suppliers at the end of any billing
month provided SEMCO ENERGY GAS COMPANY receives sufficient notice.
A customer may change suppliers one time in any 12-month period
at no cost to the customer. A switching fee of $10 will be required
for each additional change of supplier within the same 12-month
period. If a supplier's actions force a customer back onto SEMCO
ENERGY sales service, the customer may choose another supplier within
60 days, regardless of the length of time that has elapsed since
the customer left the SEMCO ENERGY sales service. Except as noted
before, a Customer returning to the SEMCO ENERGY sales service rates
from the Customer Choice program must remain on the SEMCO ENERGY
sales rate for 12 months. If a customer chooses to return to SEMCO
ENERGY within the first 12 months, the customer will be charged
the greater of SEMCO ENERGY's current Energy Charge or the current
market rate.
When may I enroll? <Top>
SEMCO ENERGY GAS COMPANY customers may enroll in the Customer Choice
program at any time.
Can I return to SEMCO ENERGY if I select
another supplier? <Top>
A customer who has elected to take service under Customer Choice must
remain on the Customer Choice program for at least 12 months, however,
a customer may switch suppliers once during the 12-month period without
a charge from SEMCO ENERGY. After that, a charge of $10 will be assessed
each time the customer switches suppliers.
A customer may only change from Customer Choice to the SEMCO ENERGY GAS
COMPANY rate during the 12-month period if:
- A residential customer exercises an unconditional right of cancellation
in the first 30 days with the initial alternate supplier selected
by the customer, or
- The customer establishes that the customer was enrolled by an
alternate supplier without the customer's knowing consent (slamming),
or
- The Supplier's action forces the customer to the SEMCO
ENERGY sales service, or
- The alternate supplier selected by the customer defaults under
its Supplier Agreement, or
- The Supplier selected by the customer has its “Authorized
Supplier” status revoked or terminated.
How Often May I Change Suppliers? <Top>
How often a Customer Choice participant changes a third-party supplier
within a 12-month period is dependent upon the contract between
the customer and the supplier. If a Customer Choice participant
does switch suppliers, it may be done at the end of any SEMCO
ENERGY billing month provided that we receive sufficient
notice. The first time that a Customer Choice participant changes
suppliers in any 12-month period, SEMCO ENERGY
will not charge a switching fee. A switching fee of $10 to cover
our administrative costs, however, will be required for each additional
change of supplier within the same 12-month period. If a supplier's
actions force a customer to SEMCO ENERGY's gas
service, the customer may choose another supplier within 60 days
regardless of the length of time that has elapsed since the customer
left the Company's gas service. Except as noted in the previous
sentence, a customer returning to SEMCO ENERGY’s
gas rates from Customer Choice must remain on the rate for 12 months.
How do I remain with SEMCO ENERGY GAS
COMPANY? <Top>
That's the easiest choice. Do nothing. Participation in the Customer
Choice Program is not mandatory. If you do nothing to change your natural
gas supplier, you will continue to receive the same great service from
SEMCO ENERGY GAS COMPANY that you always have enjoyed.
Who are the suppliers?
<Top>
SEMCO ENERGY does not maintain a list or recommend
one supplier over another. Please see the MPSC website (http://www.cis.state.mi.us/mpsc/gas/choice.htm)
for a list of suppliers.
How do I protect my personal information? <Top>
Do not give personal information such as Social Security, driver's
license or credit card numbers to any supplier. The only information
the supplier requires to enroll you in Customer Choice is the name
and service address and account number on your SEMCO ENERGY
account.
Can Customer Choice participants remain on
the Budget Billing Plan? <Top>
Yes, you can stay on the Budget Billing Plan if you enroll in Customer
Choice but your budget payment will be based on SEMCO ENERGY's
energy charge.
Why isn't my budget payment based on my supplier's energy charge? <Top>
Your budget payment is based on the energy charge SEMCO
ENERGY controls, which is our Energy Charge. We cannot
control the Energy Charge of a third-supplier.
Where Can I find additional information? <Top>
To find more detail on what deregulation is and learn what suppliers
are currently recruiting customers, visit the Michigan Public Service
Commission (MPSC)
Website: http://www.cis.state.mi.us/mpsc/gas/choice.htm
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