Aug. 26, 2015 - How would you like to know that, regardless of what happens at the gas pump, you're guaranteed a locked-in price per gallon of gasoline for a year?
That's basically what Black Hills Energy is offering its Nebraska natural gas customers with the utility's Annual Price Option program: the opportunity to lock in the per-therm price for natural gas on their utility bill for a year.
The Annual Price Option is a residential program with an enrollment period beginning Aug. 27 at www.annualpriceoption.com, or by calling 800-753-7509 between 8 a.m. and 8 p.m. Monday through Friday. Enrollment ends Oct. 9 or when 9,500customers have enrolled, whichever occurs first. The locked-in commodity price will be in effect from Nov. 1, 2015, through Oct. 31, 2016.
"APO provides price certainty for our residential customers who like knowing that, for an entire year, their natural gas commodity price will not change," said Don Nordell, Black Hills Energy's business operations director. "Just like gasoline, the market price for natural gas is influenced by supply, demand and global factors. Signing up for the APO program is like always knowing the price you'd pay at the pump, regardless of what the market does."
Monthly bills will increase or decrease for APO customers, based on how much natural gas a customer uses. Factors causing the change include weather, efficiency of heating systems and how well a home is insulated.
Customers who don't participate in the APO program will continue to be charged the "traditional billing" price per therm, which can and will fluctuate with market conditions.
In addition to the APO program, Black Hills Energy offers a Budget Billing option with year-round open enrollment that takes the seasonal peaks out of natural gas bills for a more stable monthly bill.
Black Hills Energy's Nebraska service territory is divided into three rate areas. Natural gas prices vary slightly between rate areas because of differences in interstate pipeline carrier costs to transport natural gas to each area.
* In addition to the actual natural gas supply cost, all customer bills include Black Hills Energy's delivery charge (identified as "Base Rate" on the monthly Black Hills Energy bill) of $0.195 per therm of natural gas, and other fees and taxes approved by the Nebraska Public Service Commission. The total bill is subject to the Gas Cost Reconciliation (identified on the Black Hills Energy monthly bill as "GCR") per-therm charge.